Private equity shop Cerberus Capital is looking to sell auto lender Chrysler Financial, Reuters reported, citing a Bloomberg report. Cerberus bought the Farmington, Michigan-based business as part of its 2007 buyout of Chrysler LLC. The business has a book value of between $6 billion and $7 billion, Reuters said.
(Reuters) – Cerberus Capital Management is on the lookout for buyers for auto lender Chrysler Financial, which it acquired as part of a Chrysler LLC buyout deal in 2007, Bloomberg reported, citing two people with knowledge of the matter.
Private-equity firm Cerberus has in recent days began soliciting interest in the Farmington Hills, Michigan-based business from large banks, the news agency said.
The former lending arm of Chrysler has a book value, or assets minus liabilities, of about $6 billion or $7 billion, the report said.
Chrysler emerged from a U.S. government-funded bankruptcy in June 2009. Cerberus retained ownership of Chrysler Financial.
The Bloomberg report said Cerberus spokesman declined to comment.
Cerberus could not immediately be reached for comment by Reuters.
(Reporting by Thyagaraju Adinarayan in Bangalore, additional reporting by Megan Davies; Editing by Dhara Ranasinghe)