Comprehensive M&A data with integrated detailed company information
GE cuts Baker Hughes stake
Posted on Thursday, 12 September 2019 13:30
General Electric (GE) and its affiliates will cease to hold more than 50.0 per cent of the voting power of all classes of stock in Baker Hughes, a GE company, following a secondary offering worth as much as USD 2.84 billion.
This will result in the reduction in the number of individuals the heavyweight is entitled to nominate to the subsidiary’s board of directors from five to one.
GE has already informed Baker Hughes that John Rice will remain as its designee; Jamie Miller and James Mulva will submit their resignations to the conflicts committee.
Lorenzo Simonelli and W Geoffrey Beattie are expected to continue to serve on the company’s board but not as nominated directors.
In addition, in connection with the completion of the offering, Baker Hughes, a GE company, intends to change its corporate name to Baker Hughes Company.
JPMorgan, Citigroup, Goldman Sachs and Morgan Stanley are acting as joint lead bookrunning managers on the offering due to complete on 16th September.
GE and its affiliates have increased the number of existing class A shares on sale from an initial 105.00 million to 115.00 million, and also boosted the overallotment option to 17.25 million units.
At USD 21.50 apiece, the price represents an 11.1 per cent discount to USD 24.18 on 9th September, which is the last unaffected trading day before news of the offer emerged.
Based on the exercise of the green shoe, the deal would be fourth-largest secondary offering announced globally in 2019 to date, according to Zephyr, the M&A database published by Bureau van Dijk.
The biggest at the moment is the sale of shares in Novolipetskii Metallurgicheskii Kombinat by Fletcher Group Holdings for USD 4.19 million.
Recruit Holdings of Japan accounts for the second-largest (USD 3.40 billion), while Slack Technologies is third (USD 3.08 billion).
© Zephus Ltd