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GE CAPITAL TO ACQUIRE FINAX GROUP

 STAMFORD, Conn., Aug. 16 /PRNewswire/ -- GE Capital and The Wasa Group today announced the sale of The Finax Group, a Stockholm-based consumer finance company, to GE Capital. The purchase price was slightly in excess of $125 million (SEK 1 billion). In addition, GE Capital will repay all existing borrowings of Finax, including external borrowings of $262.5 million (SEK 2.1 billion), and will assume full responsibility for the future financing of Finax's business.
 Edward D. Stewart, executive vice president of GE Capital, said, "The addition of Finax further broadens our consumer finance presence in Europe and provides a well established platform from which GE Capital can offer a comprehensive array of products and services to Finax's existing customers and to consumers throughout the Scandinavian countries."
 Finax comprises one Norwegian and four Swedish consumer finance companies that provide consumer credit, principally in the form of unsecured personal loans and credit cards to approximately 400,000 customers.
 At Dec. 31, 1992, Finax's total loans outstanding, net of provisions for credit losses, totaled $463 million (SEK 3,706 million). Approximately 72 percent of Finax's outstanding loans are to Swedish consumers. Finax had income in 1992 of $24 million (SEK 190 million), after provisions for credit losses, but before taxes.
 The Wasa Group comprises two mutual insurance companies, Wasa Life and Wasa Non-life, which had premium income in 1992 of $403 million and $465 million (SEK 3.2 billion and SEK 3.7 billion) respectively. The Wasa Group has embarked on a program to increase its focus on its core businesses, one part of which is the disposal of its activities which do not relate to, or directly support, its insurance activities.
 The sale of Finax represents a further significant step in the program and meets two other objectives for Wasa Frs kring Frvaltnings AB, the holding company for the non-insurance activities: first to increase its equity and secondly to reduce its balance sheet gearing.
 GE Capital, a wholly-owned subsidiary of General Electric Company (NYSE: GE), is a diversified financial services company headquartered in Stamford. GE Capital's activities include specialty insurance, consumer services, specialized financing, equipment management and mid-market financing. GE is a diversified manufacturing, technology and services company with operations worldwide.
 -0- 8/16/93
 /CONTACT: Anthony B. Zehnder of GE Capital, 203-357-4728 or 203-657-3824 (home); or Per-Arne Rudbert of Wasa, 011-468-635-3500/
 (GE)


CO: GE Capital; Finax Group ST: Connecticut IN: SU: TNM

WB -- NY055 -- 3040 08/16/93 11:42 EDT
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Publication:PR Newswire
Date:Aug 16, 1993
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