GE raised nearly $1 billion through sale of Baker Hughes stock

GE raised nearly $1 billion through sale of Baker Hughes stock

GE disclosed its stake in Baker Hughes has declined to 25.7% from 30.1% in late January

General Electric Co. disclosed Friday that it sold off more of the Baker Hughes Co. shares it owned, and likely raised nearly $1 billion.

In a filing with the Securities and Exchange Commission, the industrial conglomerate said it owned 267,745,937 shares of Baker Hughes BKR, -2.24%, representing 25.7% of the oilfield products and services company’s shares outstanding.

That compares with a filing on Jan. 25 that showed GE owned 311,432,660 Baker Hughes shares, or a 30.1% stake.

Based on a volume-weighted average closing price (VWAP) of Baker Hughes stock from Jan. 25 through April 29 of $22.11, according to a MarketWatch calculation of FactSet data, the 43,685,723 Baker Hughes shares sold would have raised about $965.92 million.

GE’s stock GE, -0.68% declined 0.7% to close Friday at $13.12. It has lost 3.3% since GE reported first-quarter results before Tuesday’s open.

Baker Hughes shares shed 2.2% on Friday, but gained 0.4% on the week.

On July 29, 2020, GE said it was launching a program to “fully monetize” its Baker Hughes stake over the next three years.

Since July 29, when GE owned 377,427,884 shares, or a 36.5% stake in Baker Hughes, GE has now sold off 109,680,947 shares. Based on the Baker Hughes stock’s VWAP since July 29 of $18.95, the value of the shares sold would be about $2.08 billion.

The Baker Hughes stock GE still owns is worth about $5.40 billion at current trading levels.

GE’s stock has rallied 21.5% year to date, while Baker Hughes shares have slipped 3.7% and the S&P 500 index SPX, -0.72% has gained 11.3%.

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