General Electric Company announced today that its Board of Directors has approved the previously announced spin-off of its healthcare business, GE Healthcare Holding LLC (“GE HealthCare”). Prior to such spin-off, GE HealthCare is expected to be converted into a corporation and renamed GE HealthCare Technologies Inc. The company is expected to begin trading on Nasdaq on January 4, 2023, under the ticker “GEHC”.
To effect the separation, GE’s Board of Directors approved a distribution to GE shareholders of at least 80.1% of the outstanding shares of GE HealthCare. Holders of GE common stock will be entitled to receive one share of GE HealthCare common stock for every three shares of GE common stock held on December 16, 2022, the record date for the distribution. The distribution is expected to occur after U.S. market close on January 3, 2023. For U.S. federal income tax purposes, the distribution will be conducted in a tax-efficient manner for GE shareholders in the United States. The distribution is subject to certain conditions described in the registration statement on Form 10 filed by GE HealthCare.
“Today’s announcement marks one of the final milestones for our planned spin-off of GE HealthCare as we move toward launching three independent, industry-leading, and investment-grade companies. GE HealthCare is driving precision care globally, with a clear strategy for value creation that will benefit patients, customers, and shareholders under the leadership of CEO Peter Arduini and his team.”
H. Lawrence Culp, Jr., Chairman and CEO, GE and CEO, GE Aerospace
Following the spin-off, GE will keep up to 19.9% of the GE HealthCare common stock that is now outstanding.
Shareholders of GE are entitled to receive shares of GE HealthCare Common Stock without any further action on their part. In addition, there are no additional costs or requirements for shareholders to participate in the separation or to relinquish or exchange their shares of GE common stock.
Investor Day for GE Healthcare
GE HealthCare will hold an investor day on December 8, 2022, in New York, NY, as was previously stated. The executive team of GE HealthCare will discuss its growth plans and highlight some of its creative solutions. The upcoming spin-off can be read more about by investors, the media, and the general public at https://www.ge.com/investor-relations/spinoff-resources.
