General Electric (GE) in the US is planning to dispose of its North American Retail Finance business through an initial public offering (IPO), as part of its plan to exit from the business and focus on industrial equipment and appliances division.
A part of GE Capital, the consumer finance business provides store credit cards through retailers such as Wal-Mart.
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According to GE, it plans to file a registration statement with the US Securities and Exchange Commission (SEC) in the first quarter of 2014 and complete the IPO later in 2014.
GE said it seeks to sell up to 20% of the company in the IPO and then distribute its remaining stake to GE stockholders in exchange for GE common stock.
The lender assured that the business will continue as usual until its exit from the business, which will be completed in 2015, following suitable market conditions and regulatory approvals.
In May 2013, GE CEO Jeff Immelt said that the company wanted to reduce the finance arm’s assets from about $400bn in the first quarter of 2013 to between $300bn and $350bn by the end of 2014.
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By GlobalData
