Synchrony Financial intends to file a Registration Statement on Form S-4 with the SEC in connection with the proposed exchange offer announced by General Electric Company. In the offer, GE shareholders will have the opportunity to exchange some or all of their shares of GE common stock for shares of Synchrony Financial common stock.
GE currently holds approximately 85% of the outstanding shares of Synchrony Financial common stock. Synchrony Financial has been working toward previously announced plans to separate from GE, and anticipates that the exchange offer will be the next major step in the planned separation.
GE has commenced an offer to exchange GE common stock for common stock of Synchrony Financial presently owned by GE. This exchange offer is in connection with the previously announced separation of Synchrony, the largest provider of private label credit cards in the United States*, from GE. The exchange offer is expected to conclude the week of November 16, 2015.
Last week, Synchrony Financial received approval from the Federal Reserve to become a stand-alone savings and loan holding company following the completion of the exchange offer. In the exchange offer, or split-off, GE shareholders will have the option to tender for exchange some, none, or all of their shares of GE common stock for shares of Synchrony. GE shares tendered and accepted for exchange will reduce the outstanding shares of GE.
The separation of Synchrony Financial is consistent with GE’s stated strategy of focusing on its industrial core and reducing the size of its financial businesses. The separation reduces the systemic footprint of GE Capital and will allow Synchrony to operate as a stand-alone company and pursue a long-term strategy that is focused only on its own business objectives.
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