GE Plans Partial IPO of Retail Finance Unit
In a regulatory filing dated November 15, 2013, GE Capital said its parent company intends to pursue an initial public offering of its North American Retail Finance business as a first step in a staged exit from that business. GE plans to file a registration statement with the SEC in Q1/14 and complete the IPO later in 2014.
The filing noted that GE plans to issue up to 20% of the equity of Retail Finance in the IPO, in exchange for cash that will be used to increase the capital of the new company. GE currently intends to complete its exit from Retail Finance in 2015 through a split-off transaction, by making a tax-free distribution of its remaining interest in Retail Finance to electing GE stockholders in exchange for shares of GE’s common stock.
GE may also decide to exit by selling or otherwise distributing or disposing of all or a portion of its remaining interest in the Retail Finance shares. Retail Finance will conduct business as usual through the IPO and eventual exit, continuing to serve its partners and customers as a separate public company, the filing said.
To read the full 8K filing click here.