Form 6-K GRUPO FINANCIERO GALICIA For: Jan 12

 

 

FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

REPORT OF FOREIGN PRIVATE ISSUER

 

 

Pursuant to Rule 13a-16 or 15d-16

of the Securities Exchange Act of 1934

For the month of January, 2017

Commission File Number: 0-30852

 

 

GRUPO FINANCIERO GALICIA S.A.

(the “Registrant”)

 

 

Galicia Financial Group S.A.

(translation of Registrant’s name into English)

Tte. Gral. Juan D. Perón 430, 25^th Floor

(CP1038AAJ) Buenos Aires, Argentina

(address of principal executive offices)

 

 

Indicate by check mark whether the Registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  ☒                Form 40-F  ☐

Indicate by check mark whether by furnishing the information contained in this form, the Registrant is also thereby furnishing the information to the Securities and Exchange Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes  ☐                No  ☒

If “Yes” is marked, indicate below the file number assigned to the Registrant in connection with Rule 12g3-2(b): 82-             

 

 

 

 

---

FORM 6-K

Commission File No. 0-30852

 

Month Filed		Event and Summary		Exhibit No.
January, 2017		Press Release, dated January 12, 2017, regarding the sale of interests in Compañía Financiera Argentina S.A. and Cobranzas y Servicios S.A. by the Registrant and one of its wholly-owned subsidiaries.		99.1

 

---

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

				GRUPO FINANCIERO GALICIA S.A.
				(Registrant)
Date: January 12, 2017				By:		/s/ Pedro Alberto Richards
						Name:  Pedro Alberto Richards
						Title:    Chief Executive Officer

 

Exhibit 99.1

 

FOR IMMEDIATE RELEASE

For more information contact:

Pedro A. Richards

Chief Executive Officer

Telefax : (54-11) 4343-7528

[email protected]

www.gfgsa.com

 

GRUPO FINANCIERO GALICIA S. A. AND BANCO DE GALICIA Y BUENOS AIRES S.A. AGREE THE SALE OF COMPAÑÍA FINANCIERA ARGENTINA S.A AND COBRANZAS Y SERVICIOS S.A. TO JULIO FRAOMENI

Buenos Aires, Argentina, January 12^TH, 2017. Grupo Financiero Galicia S.A. (“Grupo Financiero Galicia”) and Banco Galicia y Buenos Aires S.A. (“Banco Galicia”) announce that they have reached an agreement for the sale of their respective interests in Compañía Financiera Argentina S.A. (“CFA”) and Cobranzas y Servicios S.A. (“C & S”) to the Dr. Julio Alfredo Fraomeni and to Galeno Capital S.A.U. (“Galeno”), subject to the regulatory approval of Banco Central de la República Argentina (Argentine Central Bank) and other control bodies.

CFA is the owner of the credit network known as “Efectivo Sí”, which was created in 1995, aimed to meet the financial needs of a population with low banking levels. C & S is the company that provides collection services to CFA.

The operation constitutes a leading platform in the consumer business, being the largest financial company in the Argentine financial system, with a 23% market share in its loans segment. CFA offers 94 branches distributed in 23 provinces and the City of Buenos Aires and a portfolio of about 500,000 customers and $ 4.1 billion of net loans.

Banco Galicia main drive for this company sale, focused on consumer financing, is to relocate its capital to accompany the dynamism of the Argentine economy, emphasizing on commercial and investment financing. The Board of Directors of Banco considers that this operation will have a beneficial impact on its business. The bank does not estimate a significant impact on its current results and this sale is expected to strengthen its capital position.

Mr. Fabian Kon, Banco Galicia’s Chief Executive Officer, said: “We are very satisfied with the agreement reached with Julio Fraomeni and Galeno. His companies’ trajectory of more than 30 years in Argentina gives us the certainty of carrying out a beneficial transaction for both, customers of the consumer business and employees of said companies”. Additionally, he also said: “At Banco Galicia we see a horizon of growth for Argentina in the nearby years, leveraged in credit that will generate a positive cycle of investment, growth, work and development. In this sense, this transaction allows us to reinforce our commitment to accompany the growth of our customers and the development of the country; while continuing to consolidate our presence in the financial system, in line with our strategy of being the best bank in Argentina.”

For his part, Julio Fraomeni, decided to invest in the consumer business, expanding the boundaries of its entrepreneurial group to the credit market, with the belief of continuing to grow in an environment that offers increasing prospects. In that sense, he also said: “It is a satisfaction for us to have concluded this agreement that allows us to diversify the company’s activities by incorporating a relevant customer portfolio. Julio Fraomeni also mentioned “I am convinced that CFA’s and C & S’s teams will successfully integrate their experience and commitment into our culture of warmth and excellence in customer service.”

---

 

The transaction is subject to the approval of the competent regulatory authorities. During the period implied, business will be as usual for the operations of CFA and C & S.

Banco Galicia’s negotiation process was accompanied by the investment bank Lazard, for financial advice, and by Estudio Beccar Varela, for legal assistance.

Grupo Financiero Galicia’s and Banco Galicia’s principal facts

Banco Galicia is one of the main private banks of the Argentine financial system with more than 110 years of experience, ranking in the number two position in terms of loans and deposits of the private sector. The bank has a network of more than 270 branches with coverage throughout the country, a portfolio of 2.3 million customers and more than 5,800 employees.

Grupo Financiero Galicia is the holding company that owns the 100% of Banco Galicia and is listed on the Buenos Aires Stock Exchange, as well as in the United States NASDAQ market. Additionally to its interest at Banco Galicia, Grupo Financiero Galicia owns others subsidiaries linked to the provision of financial services, such as Sudamericana Holding S.A., Galicia Administradora de Fondos S.A., and Galicia Warrants S.A., among others. Through its subsidiaries, Grupo Financiero Galicia has a network of more than 650 branches and employs more than 12,000 people.

Galeno’s principal facts

Julio Fraomeni is the President and main shareholder of Galeno, with more than 30 years of experience and trajectory in the country. Grupo Galeno provides services to more than 2 million people, with health plan coverage for 750,000 members, Galeno ART – its risk work insurer arm – with 1.3 million insured and Galeno Life, a company that commercializes life insurance with 200,000 contracts. Grupo Galeno holds the largest sanitary infrastructure in its own, with 7 Sanatoriums and 17 Medical Centers. Galeno Capital is a fund manager. The Group has more than 130 branches throughout the country and more than 10,000 employees.

 

 

 

 

 

This document constitutes an unofficial translation into English of the original document in Spanish, which

document shall govern in all respects, including with respect to any matters of interpretation.

 

2

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• CIDARA Therapeutics ALERT: Bragar Eagel & Squire, P.C. is Investigating Cidara Therapeutics, Inc. on Behalf of Cidara Therapeutics Stockholders and Encourages Investors to Contact the Firm
• ROSEN, A LEADING AND TOP RANKED LAW FIRM, Encourages Lifecore Biomedical Inc. f/k/a Landec Corporation Investors to Inquire About Securities Class Action Investigation – LFCR, LNDC
• ROSEN, A LEADING LAW FIRM, Encourages VinFast Auto Ltd. f/k/a Black Spade Acquisition Co. Investors to Secure Counsel Before Important Deadline in Securities Class Action – VFS