GE Capital 2015 Divestitures Hit $157 Billion
Source: Dow
GE Capital 2015 Divestitures Hit $157 Billion
Source: Dow Jones News
General Electric Co. said Thursday the unwinding of its finance arm is on track with divestitures of GE Capital totaling $157 billion in 2015 and is set to file for de-designation as a systemically important financial institution in the first quarter of 2016.
The company said it closed transactions of $104 billion in ending net investment and it expects to "largely complete" the GE Capital divestiture by year-end.
Shares of General Electric fell 2.5% premarket.
GE Capital Chief Executive Keith Sherin said an "active sales process" is ongoing for the remaining international businesses and deals signed in 2015 continue to close. He said excess capital will be returned to GE.
GE announced earlier last year it is focusing on its high-value industrial businesses and is selling most GE Capital assets. In the final weeks of the year, GE Capital closed several transactions which together contributed about $1.4 billion of capital to the overall target of $35 billion of dividends expected to paid to GE under the plan.
Mr. Sherin said GE Capital has completed the sales of businesses with franchise risk, reached sales agreements on the "vast majority" of U.S. businesses, completed the Synchrony split off, completed the $36 billion debt exchange and completed an internal reorganization.
Write to Anne Steele at Anne.Steele@wsj.com
(END) Dow Jones Newswires
January 07, 2016 07:45 ET (12:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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