GE sells BAC-Credomatic in Central America to Grupo Aval

GE Capital Global Banking announced today that it has reached a definitive agreement to sell BAC Credomatic to Grupo Aval, Colombia’s largest banking holding group, for $1.9 billion.

Thursday, July 15, 2010

The transaction is subject to certain regulatory approvals and other customary conditions, and the parties anticipate closing by the end of 2010.

“This is a good deal for GE, and furthers our objective of reducing the overall size of GE Capital,” said Dmitri Stockton, president and CEO of GE Capital Global Banking. “We have enjoyed working with BAC’s shareholders and their world-class management team to successfully grow the franchise over the previous five years. We believe this transaction will be positive for BAC, and will allow the Bank to focus solely on its excellent prospects for future growth.”

Founded in 1952, BAC International Bank has operations in Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama and Mexico, with approximately $5.1 billion in loan assets, and $5.5 billion in deposits. GE was advised in the transaction by Credit Suisse, and Latham & Watkins served as external counsel.

This purchase would represent the entry of Aval Group into the wider Central American market. It is currently only present in Panama through subsidiaries of two Colombian banks, Corficolombiana and Banco de Bogotá.

More on this topic

Grupo Aval Finalizes BAC Purchase

December 2010

Grupo Aval completed the purchase of BAC-Credomatic completing the transaction for the purchase price of $ 1,920 million.

Luis Carlos Sarmiento Angulo, president of the board of Grupo Aval, which owns 75% of Banco de Bogota, told the press, "We hope to expand the product range and offer new services designed to meet Colombian customers established in Central America and Central American customers doing business in Colombia.”

Purchase of BAC Credomatic to End This Year

October 2010

Grupo Aval would finalize the purchase this year, once it has authorizations from regulatory agencies.

The announcement was made by the president of Banco de Bogota (part of Grupo Aval), Germain Salazar. reports, "in order to get the resources for this transaction, which will be of 1,900 million dollars, Banco de Bogota announced the issuance of 2.200 million pesos in bonds convertible into shares ($ 1,220 million Dollars)."

The New Owners of BAC-Credomatic

July 2010

Luis Carlos Sarmiento Angulo, one of the richest men on earth, is the owner of Grupo Aval, which controls some of the largest banks in Colombia.

Grupo Aval agreed to purchase 100% of the shares of BAC-Credomatic from GE Capital for $1.9 billion. Currently, GE owns 75% of BAC-Credomatic and agreed to buy the remaining 25% to sell it to Grupo Aval.

Banco de Bogotá Interested in BAC-Credomatic

June 2010

The Colombian Bank has made an offer to purchase 100% of BAC-Credomatic’s shares.

The value of the offer was kept private, but it was known that it expires on the afternoon of June 10.

“After being authorized by the board of ‘Banco de Bogotá’, its president instructed one of its subsidiaries to make an offer for 100% of the shares of BAC-Credomatic Central America”, said a source from the Colombian Financial Superintendence to

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