General Electric Company (GE) has announced that its Board of Directors has given the green light to the previously announced spin-off of GE Vernova.
On April 2, 2024, GE Vernova is expected to start trading on the New York Stock Exchange (NYSE) under the ticker symbol “GEV”. H. Lawrence Culp, Jr., the Chairman and CEO of GE, as well as the CEO of GE Aerospace, stated that this announcement paves the way for the historic launches of GE Vernova and GE Aerospace, marking the completion of their transformation into three independent industry leaders with investment-grade status. Starting from April 2, both companies will operate independently, with GE Vernova leading the energy transition under the guidance of Scott Strazik and his team, while GE Aerospace will define flight for the present, future, and beyond.
The prospects and responsibilities ahead are met with great enthusiasm by all. To facilitate the separation, GE’s Board of Directors has approved the distribution of all shares of GE Vernova’s common stock to GE shareholders. Holders of GE common stock will receive one share of GE Vernova common stock for every four shares of GE common stock held on March 19, 2024, which serves as the record date for the distribution. The distribution is expected to take place before the opening of the U.S. market on April 2, 2024. From a U.S. federal income tax perspective, the distribution will be carried out in a tax-efficient manner for GE shareholders in the United States.
The distribution is subject to certain conditions outlined in the registration statement on Form 10 filed by GE Vernova. GE shareholders are not required to take any action to receive the shares of GE Vernova common stock that they are entitled to as GE shareholders. Furthermore, shareholders are not obligated to provide any consideration or surrender or exchange their shares of GE common stock to participate in the separation.
GE Vernova will commence when-issued trading on the New York Stock Exchange:
After the planned spin-off is finalized, GE will function under the name GE Aerospace. Shareholders of GE will retain their ownership of GE common stock, now associated with the new company name, GE Aerospace. Furthermore, GE Aerospace will maintain its listing on the NYSE with the ticker symbol “GE.”
GE foresees that trading of GE Vernova common stock on the NYSE, known as “when-issued” trading, will commence around March 27, 2024, with the symbol “GEV WI.”
Subsequently, on April 2, 2024, GE Vernova common stock will officially begin trading on the NYSE, referred to as “regular-way” trading, under the symbol “GEV.”
During the period from March 27, 2024, to April 1, 2024, there will be two markets for GE common stock on the NYSE. The first is the “regular-way” market denoted by the symbol “GE,” where GE shares will be traded along with the entitlement to receive shares of GE Vernova common stock in the distribution.
GE Vernova and GE Aerospace Investor Days are scheduled for next week:
The second is the “ex-distribution market” represented by the symbol “GE WI,” where GE shares will be traded as GE Aerospace without the right to receive shares of GE Vernova common stock in the distribution. Shareholders of GE who possess common stock as of the record date, March 19, 2024, and intend to sell any of those shares before the distribution date, should seek guidance from their stockbroker, bank, or other nominee to ascertain whether the GE common stock will be sold with or without entitlement to the GE Vernova common stock distributed during the distribution.
GE Vernova and GE Aerospace have scheduled investor days on March 6 and March 7, 2024, in New York, NY. During these events, the management teams of both companies will share their growth strategies and highlight their innovative solutions.
