GE to distribute 8.7 billion shares to its to shareholders on February 14.
General Electric Co expects to close the merger of its transportation business with Wabtec Corp on Feb. 25. It will then set date for the distribution of shares.
The development comes in the wake of GE announcing last year that it would merge its transportation business with Wabtec, a U.S. rail equipment manufacturer in a deal worth more than $11 billion. The deal will leave GE and its shareholders with just under half of the combined business.
GE has also stated, it would distribute 8.7 billion shares to its to shareholders on February 14.
Basing on the outstanding common stock of GE and Wabtec’s shares as on December 31, 2018, GE’s shareholders are slated to receive 0.005403 of a share of Wabtec’s common stock for each GE share held by them.
After the closing of the deal, Wabtec will own 50.8% of the combined company, with GE and its shareholders owning the rest.