(Reuters) – Société Générale announced on Thursday the signing of a memorandum of understanding with the BPCE group with a view to the sale of its subsidiary SGEF (Société Générale Equipment Finance) for an amount of 1.1 billion euros, in as part of its strategic plan aimed at simplifying its portfolio of activities.
The French bank estimated in a press release that the transaction, subject to applicable social procedures, the usual suspensive conditions, and the approval of the competent financial and regulatory authorities, would have a positive impact of around 25 basis points on its capital ratio. CET1 capital, a key indicator of financial solidity.
The operation must be finalized in the first quarter of 2025.
SGEF offers financing and leasing solutions for distributors, traders, manufacturers and businesses. The memorandum of understanding does not concern SGEF’s activities in the Czech Republic and Slovakia.
The new general director of the Société Générale group, Slawomir Krupa, presented a strategic plan last September aimed in particular at simplifying its portfolio of activities.
A possible sale of SGEF had already been mentioned by several sources. The bank also sold subsidiaries in Africa last year.
(Jean-Stéphane Brosse)
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