GE: 2.7 billion dollars from sale of BHGE stake
(CercleFinance.com) - GE plans to raise approximately 2.
7 billion dollars from the reduction of its stake in oil services provider Baker Hughes (BHGE), the US industrial company said on Thursday.
GE is selling 115 million of "class A" shares at a price of 21.5 dollars through a public offering, with the underwriters having an option to purchase up to an additional 17.25 million shares.
In addition, GE is selling to BHGE, in a privately negotiated transaction, 250 million dollars of shares of BHGE "class B" stock.
The combined net proceeds of the offering and the repurchase will be approximately 3 billion dollars, assuming full exercise of the underwriters' option to purchase shares, GE said.
Upon completion of the deals, GE will hold approximately 38.4% of BHGE's stock. The company will no longer have a controlling interest in BHGE, meaning that it will deconsolidate the unit.
GE said that it expects to recognize a significant loss in earnings as a result of ceding control of BHGE, which it will book in its third-quarter results.
In July 2019, GE estimated the loss upon BHGE's deconsolidation at approximately 7.4 billion dollars.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
7 billion dollars from the reduction of its stake in oil services provider Baker Hughes (BHGE), the US industrial company said on Thursday.
GE is selling 115 million of "class A" shares at a price of 21.5 dollars through a public offering, with the underwriters having an option to purchase up to an additional 17.25 million shares.
In addition, GE is selling to BHGE, in a privately negotiated transaction, 250 million dollars of shares of BHGE "class B" stock.
The combined net proceeds of the offering and the repurchase will be approximately 3 billion dollars, assuming full exercise of the underwriters' option to purchase shares, GE said.
Upon completion of the deals, GE will hold approximately 38.4% of BHGE's stock. The company will no longer have a controlling interest in BHGE, meaning that it will deconsolidate the unit.
GE said that it expects to recognize a significant loss in earnings as a result of ceding control of BHGE, which it will book in its third-quarter results.
In July 2019, GE estimated the loss upon BHGE's deconsolidation at approximately 7.4 billion dollars.
Copyright (c) 2019 CercleFinance.com. All rights reserved.