General Electric (GE) has approved plans to spin-off GE Vernova, the group’s renewable energy wing.
The company is expected to begin trading on the New York Stock Exchange (NYSE) on 2 April, 2024, under the ticker symbol ‘GEV’.
GE’s Board of Directors has approved a distribution to GE shareholders of all shares of GE Vernova’s common stock.
Holders of GE common stock will be entitled to receive one share of GE Vernova common stock for every four shares of GE common stock held on March 19, 2024, the record date for the distribution.
The distribution is expected to occur before US market open on 2 April, 2024. For US federal income tax purposes, the distribution will be conducted in a tax-efficient manner for GE shareholders in the US.
GE shareholders do not need to take any action to receive shares of GE Vernova common stock to which they are entitled as a GE shareholder. Additionally, shareholders do not need to pay any consideration, or surrender or exchange shares of GE common stock, to participate in the separation.
The distribution is subject to certain conditions described in the registration statement on Form 10 filed by GE Vernova.
Following completion of the planned spin-off, GE will operate as GE Aerospace.
GE Chairman and CEO and GE Aerospace CEO H Lawrence Culp, Jr said: “Today’s announcement clears the way for the historic launches of GE Vernova and GE Aerospace, completing our transformation into three independent, investment-grade industry leaders.
“Beginning April 2, both companies will be fully independent, with GE Vernova positioned to lead the energy transition guided by Scott Strazik and his team, and GE Aerospace set up to define flight for today, tomorrow, and the future. We are all excited about the opportunity and the responsibility ahead of us.”