FinkAvenue
GE Health Care (NASDAQ:GEHC) Share fell ~3% on Wednesday, recording its worst intraday drop in 2024, after the MedTech giant announced that its former parent, General Electric (GE), would reduce its stake in the company.
Under the terms, General Electric (GE), which GEHC, spun off as a publicly traded entity in January 2023, will participate in a secondary offering of the company's common stock.
On Tuesday, GE HealthCare (GEHC) increased the size of its underwritten offering to 14 million from 13 million common shares, but the transaction will not generate any proceeds for the company.
Before the offering closes on Friday, General Electric (GE) will enter into a debt-for-equity swap with Morgan Stanley to reduce its debt as part of a tax-free transaction.
Following the spin-off, General Electric (GE) ended 2023 with 60 million shares of GE HealthCare (GEHC), or ~14% of its ownership. According Barron, GE has offloaded about 27 million GEHC shares since the spinoff, including yesterday's transaction.
