General Electric Co. has completed its spinoff of consumer-finance business Synchrony Financial, following a share exchange that was more than thee times oversubscribed and marking GE’s latest move to dismantle its financial-services unit.
Under the terms of the exchange offer, GE will swap 1.0505 shares of Synchrony
for each GE share
The company estimates that about 31% of the tendered shares of GE common stock will be exchanged. Because the exchange offer was oversubscribed, GE is accepting only a portion of the shares tendered. The company said it would announce the final proration factor Nov. 20.
The transaction will reduce the outstanding float of GE common stock by about 6.6%, equivalent to a $20.4 billion share buyback, the company said.
GE and its subsidiaries owned about 85% of Synchrony, which went public last year.
An expanded version of this report appears at WSJ.com.
View more information: https://www.marketwatch.com/story/general-electric-conducts-synchrony-share-swap-2015-11-17-101032821