GE took another step forward Monday (Nov. 16) in its effort to divest its banking interests and strengthen its industrial core when the company completed the transition of its private label credit card company, Synchrony, into a standalone company.
GE had offered just over one share (1.0505) of Synchrony for each share of GE stock in the exchange.
The separation reduces the systemic footprint of GE Capital and aligns with the company’s strategy to focus on its industrial businesses, which has included the sale of most GE Captial assets, including its dealership, floorplan lender Commercial Distribution Finance.
“The completion of the Synchrony Financial exchange is an important part of GE’s transformation into a simpler, more focused company,” GE Capital Chairman and CEO Keith Sherin said. “We’re excited to watch Synchrony continue to grow and succeed on its own. Synchrony has great leaders and an excellent team executing under the direction of CEO Margaret Keane.”
According to the release, the deal should reduce the outstanding float of GE common stock by about 6.6 percent. The company estimates that 31 percent of tendered shares of GE common stock will be exchanged in the Synchrony deal.