Close Close
Sign In
Newsletters
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
Podcast Center Video Center Webcasts Resource Center Events
About ThinkAdvisor Contact Us Advertise With Us Asset & Logo Licensing Sitemap Terms of Service Privacy Policy Copyright © 2024 ALM Global, LLC. All Rights Reserved.
ThinkAdvisor

Life Health > Life Insurance

GE Continues To Sell Genworth Stock

By Jim Connolly

X
Your article was successfully shared with the contacts you provided.

A Fairfield, Conn., conglomerate says it will be continuing to pull back from the life insurance industry.[@@]

The company, General Electric Company, says it will sell up to 82 million shares of Class A common stock issued by Genworth Financial Inc., Richmond, Va.

That deal and a related deal, which would involve Genworth buying more than $400 million in Genworth B common stock from GE at the net price GE receives for the Class A stock, could reduce GE’s stake in Genworth to about 51% of Genworth’s common stock, according to GE and Genworth.

Completion of the Class B deal would be contingent on the completion of the Class A deal, Genworth says.

A unit of Citigroup Inc., New York, would sell GE’s Genworth shares through a secondary public offering.

GE says it wants to use the proceeds from the Class A stock sale to “eliminate ?parent-supported’ debt at GE Capital and enable GE Capital to increase the dividend it pays GE from 10% of its earnings to 40% commencing in the second quarter.”

GE sold 30% of Genworth common stock through a $2.9 billion initial public offering in May 2004.

GE says it plans reduce ownership in Genworth further over the next 2 years as the life insurance and financial services company moves to full independence.

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.