GeneralElectric Co. said April 1 that it entered into an to sell 'smajority stake in Bank BPHSA's core bank to Alior Bank SA.

With the transaction, Bank BPH will be transformed into two separateoperating units, the core bank and the mortgage bank, followed by the spin-offand demerger of Bank BPH's core bank into Alior Bank. Bank BPH's core bank willinclude its nonmortgage banking assets and the employees associated with thebusinesses.

The transaction represents ending net investment of about$2.1 billion as of fourth quarter 2015 and is expected to release about $200million of capital to GE. GE will retain $3.9 billion of mortgages in BankBPH's mortgage bank unit and BPH TFI, the bank's asset management business. Thetransaction is subject to a several conditions including regulatory approvals.

The large majority of Bank BPH's employees and branchnetwork will join Alior Bank.

The transaction is expected to close in the fourth quarterof 2016, subject to regulatory approvals from the Polish Financial SupervisionAuthority, antitrust clearance, a rights issue by Alior Bank, and thedemerger/spin-off of Bank BPH's core bank to Alior Bank.

As previously announced,GE is focusing on its high-value industrial businesses and is selling most GECapital assets. GE will retain the financing verticals that relate directly toGE's industrial businesses. Since the announcement in April 2015, GE Capitalhas signed agreements for about $165 billion and has closed about $146 billionof those. In total, GE plans to sell about $200 billion of GE Capitalbusinesses worldwide and expects to be largely complete with the process by theend of 2016.