ABB said today it has agreed to sell the car-leasing portfolio of ABB Export Bank to the Swiss leasing company, Auto-Interleasing for $18.5 million. Auto-Interleasing AG, based in Basle, Switzerland, specialises in fleet management.
According to a statement, the deal is part of ABB’s strategy to divest non-core businesses to focus on power and automation technologies.
The deal is scheduled to close on March 31, 2003. ABB said proceeds from the sale would be used to further reduce its net debt.
‘This is part of our ongoing divestments this year of non-core businesses, and was instrumental for the upcoming sale of the main business of ABB Export Bank in export, trade and project financing,’ said Peter Voser, ABB’s chief financial officer. ‘We reached a fair price above book value for the leasing portfolio, reflecting the quality of the assets.’
ABB Export Bank was part of the Structured Finance business area of ABB’s former Financial Services division. ABB sold most of its Structured Finance business area last year to GE Commercial Finance for $2.3 billion.