- Along with its other planned spinoffs, GE Healthcare might provide at least USD 50 billion.
- The announcement was made by Larry Culp, the Chief Executive Officer of GE.
The US-based multinational conglomerate General Electric (GE) is reportedly planning to sell almost half of its healthcare arm, GE Healthcare, to cut down its enormous debt and generate cash. As per trusted sources, the announcement was made by Larry Culp, the Chief Executive Officer of GE.
Speaking during a post-earnings conference call on Thursday, Culp reportedly said that the company expects to sell up to 50% stakes in its healthcare unit and the process for public company separation is advancing at a satisfactory pace. Along with its other planned spinoffs, GE Healthcare might provide at least USD 50 billion, Culp further added.
Sources familiar with the development claim that GE had first declared its planned stake sale of GE Healthcare in June, under the leadership of CEO Kieran Murphy. The then CEO of GE, John Flannery had reportedly commented that the conglomerate would sell about 20% of its healthcare unit and disburse the remaining 80% to its stakeholders tax-free. However, Flannery was replaced by Larry Culp as the CEO of the conglomerate and he had suggested that GE might sell even more stake of its healthcare arm, cite trusted sources.
Reportedly, GE is also working on an IPO offering that is slated to come by the mid-2019. The multinational giant had previously stated that divesting its healthcare arm was a practical decision as it would enable the firm to double down on its core energy and industrial businesses.
According to the Chairman and CEO of Melius Research, Scott Davis, selling more of the GE Healthcare would prove to be beneficial for GE to bring down its debt as it struggles to do so across many verticals.