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Thu 1 Oct 2015 02:58 PM

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Mubadala GE Capital set to sell off most of its assets

Sale is with Midcap, a boutique finance firm based in Chicago that provides revolving and term debt facilities

Mubadala GE Capital set to sell off most of its assets
(Getty Images)

Mubadala GE Capital, a joint venture between Abu Dhabi state fund Mubadala and General Electric's finance business, said on Wednesday it had agreed to sell most of its assets including those held through subsidiaries.

Mubadala GE Capital had been evaluating its future structure since GE announced plans in April to sell off most of GE Capital and become a simpler industrial business.

In a statement on Wednesday Mubadala GE Capital said it had entered "a sale and purchase agreement" with finance firm MidCap FinCo, which is managed by a subsidiary of private equity firm Apollo Global Management.

MidCap Financial is a boutique finance firm based in the United States in Bethesda, near Washington, that provides revolving and term debt facilities to clients, according to its website.

MidCap expects to buy "substantially all of the assets of the Mubadala GE Capital and its subsidiaries", the statement said.

It did not disclose the deal's value and said the final price could change.

The transaction, which is payable in cash, is subject to conditions and may be cancelled under certain circumstances, the statement added.

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