SG announces an agreement for the sale of PEMA GmbH to TIP Trailer Services
Societe Generale announces the signing of an agreement to sell PEMA GmbH, a truck and trailer rental company to TIP Trailer Services, a company specialized in operational leasing of transportation equipment in Europe and Canada. TIP Trailer Services is a portfolio company of I Squared Capital, a leading infrastructure investment manager.
The completion of the transaction is subject to the approval of the relevant antitrust authorities. The closing is expected to take place in the coming months.
PEMA GmbH currently manages a fleet of around 19,000 vehicles in seven countries in Europe *. This transaction is expected to have a positive impact on the Group's CET1 ratio of around 2 basis points. The transaction will also have a negative impact of EUR 43 million on the Group's second quarter 2019 results, due to goodwill and fixed asset impairments in application of IFRS 5.
Philippe Heim, Deputy Chief Executive Officer of Societe Generale group in charge of International Retail Banking activities, Financial Services and Insurance, comments: “This transaction illustrates the dynamic management of the Group's business portfolio and is another step in the execution of its refocusing program. Societe Generale will pursue its strategy of profitable growth in equipment finance and leasing through its subsidiaries ALD and Societe Generale Equipment Finance.”
* Germany, Belgium, Denmark, Poland, Czech Republic, Sweden, Switzerland