GE bolsters $3 billion share buyback plans

By Dhirendra Tripathi – General Electric (NYSE:) Shares gained 3.1% in premarket trading on Wednesday after the company announced it would repurchase shares up to $3 billion.

Redemptions will be made from time to time on the open market, the company said without specifying an expiration date for the exercise.

As of Tuesday, GE’s 1.14 billion shares had a market cap of more than $101 billion. At its last closing price of $88.15, a $3 billion allocation will net the company about 34 million shares, or about 3% of its equity.

Despite eroding more than 22% of the stock over the past year, GE has seen a turnaround while reducing debt and restructuring its business.

Last year, it merged its GE Capital Aviation Services aircraft leasing unit with AerCap for $30 billion while owning 46% of the merged entity.

In July 2021, it completed its one-for-eight stock split.

The company is currently splitting its activities into three: health, energy and aviation. It plans to divest its healthcare business early next year and its renewable energy and power company early in 2024, leaving the remaining entity to focus largely on aviation. GE expects to retain around 20% in the healthcare sector.

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