- GE removes $20.4 billion of stock from market in transaction
- Disposals to enable return of $90 billion to investors
General Electric Co. completed the spinoff of consumer finance arm Synchrony Financial by exchanging the unit’s shares for its own stock, concluding an important step in its shift of focus to industrial operations.
The transaction removes 6.6 percent, or about $20.4 billion worth, of GE stock from the market, the Fairfield, Connecticut-based manufacturer said Tuesday in a statement. For each GE share, investors will receive 1.05 shares in Synchrony. The exchange offer was 3.2 times oversubscribed, GE said.
Synchrony has been publicly traded since last year as part of GE Chief Executive Officer Jeff Immelt push to divest the engineering giant’s consumer-facing finance operations. The exchange offer also forms part of the executive’s plan to return more than $90 billion to investors by 2018, GE said Tuesday.