General Electric announced plans for a $3 billion flotation of one of its consumer finance operations later this month, according to a gulfnews.com article. The move is part of CEO Jeff Immelt’s efforts to reposition the company as an industrial group after its deal with France Alstrom.
GE also confirmed end-of-July plans to launch an initial public offering of shares in its store credit business in North America, Synchrony Financial.
Together, both deals are part of a strategy to decrease “GE’s dependence on financial businesses and increase its focus on industrial activities […] from which it expect to derive 75 percent of earning by 2016.”
“With the retail finance split-off and Alstom acquisition, we are boldly repositioning the company for the future,” said Immelt in the article.
The GE spinoff is expected to be the biggest US IPO this year and is expected to raise $3.1 billion by selling a 15 per cent stake in the business.
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