Stamford (US), Nov 19: General Electric Co. has announced that it will spin off most of its life and mortgage insurance operations into a new company, a major move toward transforming the world's most valuable business. GE said it intends to pursue an initial public offering of a new company named Genworth Financial Inc. The businesses in the new company have a book value of about USD 10 billion, GE said.
The transaction is expected to be completed in the first half of 2004, subject to market conditions and regulatory approvals.
GE, based in Fairfield, plans to sell about 30 per cent of the equity of the new company in the IPO, and expects to reduce its ownership position over the next three years as Genworth transitions to being a fully independent company.
The move is part of GE's strategy of reshaping its portfolio of businesses to restore double-digit profit growth.
"This IPO is both an important step in the transformation of GE and a significant opportunity for Genworth," said GE chief executive Jeff Immelt. Bureau Report