NEW YORK (TheStreet) –– General Electric (GE - Get Report) could raise over $3 billion from the spin-off of its North American retail finance unit, filings with the Securities and Exchange Commission showed today.
The unit, Synchrony Financial, was formerly known as GE Capital and handled credit cards for stores including Gap (GPS) and Walmart (WMT). In March, GE filed with the Securities and Exchange Commission to spin off GE Capital in an IPO. At its height, GE Capital accounted for just under half of GE’s revenues. Now, CEO Jeff Immelt hopes to slim down GE such that GE Capital accounts for 25% of profits by 2016.
In its latest SEC filing, GE, based in Fairfield, Connecticut, said it would sell 15% of Synchrony, or 125 million shares of common stock, at $23-$26 per share. If sold at the midpoint of $24.50, GE would raise $2.9 billion after expenses, which values Synchrony at $20.3 billion.
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