General Electric has revealed plans to sell approximately 60 million shares in Genworth Financial. The move comes just six months after GE's last mass sale of stock in its insurance spin off subsidiary.
The international conglomerate intends to sell about 19% of its share in Genworth in its latest offering as part of its strategic initiative to reduce its investment in the insurance sector.
GE plans to sell 60 million shares of Class A common stock of Genworth in an underwritten public offering and 21 million shares to Citigroup Global Markets Inc., an affiliate which intends to publicly offer securities exchangeable for the Class A shares.
GE also intends to grant over-allotment options to permit the underwriters of the common stock offering to purchase an additional 9 million shares and to permit Citigroup Global Markets Inc. to purchase an additional 3.15 million shares.
Having reduced its holding in Genworth to 51% earlier in the year, GE’s share of the insurance company will be further reduced to around 32% following this latest sale.