General Electric is looking to raise up to US$3 billion in sale of majority-owned shares, resulting in a reduction of the US industrial conglomerate’s stake in the oilfield services provider to less than 50%, Baker Hughes reported The Wall Street Journal.
GE has been selling its stake to both exit the business and raise cash to pay down its debt load. Last year, GE sold a US$4 billion stake and recorded a US$2.2 billion loss on the transaction, which reduced its ownership from 62.5% to 50.2%.
The stake sale is the latest move by Chief Executive Larry Culp to raise cash and pay down GE’s more than US$100 billion in debt. It recently reached a deal to sell its airplane finance arm of GE Capital to Apollo Global Management, and has sold its transportation business. It is in the process of selling its biotech business to Danaher for US$21 billion, the Journal reported.
Concurrently, Baker Hughes agreed to buy back US$250 million shares from General Electric and others through a privately negotiated transaction.