Dubai: Mubadala GE Capital Ltd, the joint venture between Abu Dhabi’s Mubadala Development Co and General Electric Co, is laying off 36 people and has shrunk assets to about $1 billion, less than a decade after it started with ambitions to reach $40 billion.
Apollo Global Management LLC’s MidCap Finco agreed to buy $3.6 billion (Dh13.2 billion) of corporate and real estate loans held by the joint venture, a deal that includes “substantially all of its assets,” according to a statement on Wednesday. Mubadala GE Capital had total assets of $4.6 billion at the end of June, according to financial statements published on its website. About $300 million of its remaining assets is cash, the data show.
As a result of the sale, “36 employees have been impacted and the majority of those are in the process of being redeployed within the shareholders or have found opportunities outside of the group,” Mubadala GE Capital said in a statement. “Given that the business is still operational, we don’t anticipate any further layoffs this year”.
Boost assets
Started in 2008 with commitments from each of the two shareholders to contribute $4 billion in equity, Mubadala GE Capital aimed to boost its assets by investing in the Middle East and Africa. The company is now shrinking as General Electric plans to exit from most General Electric Capital Corp businesses.
The sale of the majority of Mubadala GE Capital’s remaining assets is the third announced disposal of the joint ventures investments in the past 18 months. Blackstone Group LP said in June it would acquire commercial real estate debt assets from the company, without giving a valuation, and Abu Dhabi Commercial Bank bought Dh450 million ($123 million) of loans to small and medium-sized companies based in the UAE in April 2014.
