GE Money Bank sale to value company at up to $1.67 bln

Reuters

* General Electric's Swiss unit sets share sale price range

* Each share to be priced between 43 and 51 Swiss francs

* Eyes market cap of up to 1.53 bln Swiss francs

* Listing planned for Oct. 30

ZURICH, Oct 16 (Reuters) - General Electric's flotation of its GE Money Bank is expected to value the Swissconsumer finance business at up to 1.53 billion Swiss francs($1.67 billion), in a further step in the U.S. firm's retreatfrom the finance sector.

GE Money Bank expects to raise up to 1.05 billion Swissfrancs from the share sale it said on Wednesday, in what will beSwitzerland's first flotation in a year.

GE Capital, a subsidiary of General Electric, plans to sellup to 18 million shares, or 60 percent of Zurich-based MoneyBank.

General Electric has said it aims to shift its earnings mixto 70 percent industrial and 30 percent financial. The companyhas already sold its consumer credit business in Austria andGermany to Spanish bank Santander.

GE's banking business, GE Capital, which has a consumerfinance and banking business specialised in credit cards,personal loans, auto financing and savings, contributed 45percent of GE's earnings in 2012.

Money Bank said it expects to price each of the shares inthe sale, planned for Oct. 30, at between 43 and 51 Swiss francsfor a market capitalisation of up to 1.53 billion Swiss francs.

Shares in financial services peers, such as Close Brothers, Provident Financial or Capital One,trade at an average of around 12 times estimated forwardearnings, according to Thomson Reuters data.

Money Bank's targeted pricing will put its price/earningsmultiple at around 11 times, thus giving a discount of around 10percent.

Money Bank, which will change its name to Cembra Money Bankat the sale, is aiming to entice investors by proposing adividend equivalent to between 5 and 7 percent of its shareprice.

"If you are looking for a stock with a yield of 5 percent,then you can't go wrong here," one fund manager told Reuters. "Ithink it's an interesting alternative to traditional bankingshares."

Money Bank, which employs more than 700 people and has 25branches, is active in personal loans, vehicle financing, creditcards and insurance services, recording a net profit of 133million francs in 2012.

GE Capital will keep a minority stake in the Swiss lenderfor a period of one year and plans to reduce the stake overtime.

Credit Suisse is sole global coordinator and jointbookrunner for the offering, while Bank of America Merrill Lynchand Deutsche Bank are joint book runners. Bank Vontobel isco-lead manager.

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