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General Electric's (GE) Board Approves Healthcare Unit Spin-Off

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General Electric’s (GE - Free Report) board has approved the previously announced spin-off of its healthcare business, GE HealthCare, into a separate public company.

The spun-off entity will become a corporation and be renamed GE HealthCare Technologies Inc. It will begin trading on the Nasdaq on Jan 4, 2023, under the ticker symbol GEHC, while GE will continue to trade on NYSE.

General Electric’s board has approved a distribution to the company’s shareholders of at least 80.1% of the outstanding shares of GE HealthCare. GE shareholders will receive one share of GE HealthCare stock for every three shares of GE stock held on the record date for the distribution, Dec 16, 2022. The distribution is expected to take place on Jan 3, 2023. Upon completion of the spin-off, GE will retain up to 19.9% of the outstanding shares of the GE HealthCare stock.


The spin-off is part of General Electric’s plan to split its business into three independent companies — comprising GE Healthcare, GE Aviation (to be renamed GE Aerospace) and the combined operations of GE Digital, Renewable Energy and GE Power (to be named GE Vernova).

The spin-off of GE Digital, Renewable Energy and GE Power businesses is expected to be completed in early 2024. Following the completion of these transactions, GE plans to operate as an aviation-focused company starting in early 2024. GE’s separation into three public companies is expected to help each business to flourish through better operational focus, capital allocation policies and financial flexibility.

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General Electric presently carries a Zacks Rank #3 (Hold).

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