Share sales to end GE’s control of Baker Hughes

General Electric Co. and affiliates plan share sales that will end their control of Baker Hughes, a GE Company.

General Electric Co. and affiliates plan share sales that will end their control of Baker Hughes, a GE Company.

They will sell 105 million shares of BHGE Class A shares in a secondary offering under which underwriters will have the option to buy an additional 15.75 million Class A shares.

And in a privately negotiated transaction, BHGE will repurchase from GE and affiliates $250 million of BHGE Class B common shares and membership interests at the price per share at which underwriters buy Class A shares in the secondary offering.

After the transactions, GE and affiliates no longer will hold more than 50% of the voting power of all classes of BHGE’s voting stock. GE’s board representation will decline from five directors to one.

GE merged its oil and gas business with Baker Hughes Inc. in 2017, retaining 62.5% of the combined company (OGJ Online, Oct. 31, 2016).

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