“We are completing another definitive and important move to reshape GE for the future […] As part of the execution of this new plan, GE announced today an agreement to sell the bulk of the assets of GE Capital Real Estate. In total, these transactions are valued at approximately $26.5 billion," GE Chairman and CEO Jeff Immelt said, as the statement reads.
To create a simpler and more valuable industrial company we will sell most of our @GECapital assets by 2018. pic.twitter.com/UlxNHmhU6h
— General Electric (@generalelectric) 10 апреля 2015
A major part of assets belonging to GE Capital, a division of GE, is to be sold to funds managed by Blackstone. Wells Fargo will acquire a portion of the performing loans at closing. The Company also has letters of intent from other buyers for an additional $4 billion of commercial real estate assets.
Here’s what our industrial share of earnings looked like in 2001, compared to today and moving forward: pic.twitter.com/0upVXgPMFc
— General Electric (@generalelectric) 10 апреля 2015
Under the plan, GE expects that by 2018 more than 90 percent of its earnings will be generated by its high-value industrials. By comparison, in 2014, high-return industrial businesses comprised 58 percent of GE's total revenue. The company also plans to return more than $90 billion to investors in dividends, share repurchase and the Synchrony exchange through 2018. Besides, GE's board authorized a new buyback program of up to $50 billion.
GE Capital as a division of GE that provides business lending and leasing as well as a wide range of financial services for companies of all sizes in a wide array of industries.
