General Electric (GE) plans to spin-off its healthcare unit as a business in itself, selling 20 percent and distributing the rest to shareholders, according to CNBC.
Shareholders will receive 80 percent of GE Healthcare’s value as a tax-free distribution in efforts to reduce company debts and increasing cash. This announcement is paired with other decisions in order to focus the company on jet engines and energy, breaking up a longtime reigning conglomerate.
Despite leaving the Dow Jones industrial average, shares are looking good as GE reports the “best day in three years” with an 8.7 percent jump.
Read the full story at CNBC.
For more on this, visit Reuters.