GE today announced the pricing of the Genworth secondary public offering.
A total of 80,500,000 shares of Genworth Class A common stock are being sold in
the secondary offering at a price to the public of $26.50 per share. The
underwriters do not have an over-allotment option.
Concurrently with the closing of the offering, Genworth will repurchase directly
from GE approximately 19.4 million shares of Genworth's Class B Common Stock for
GE, as the selling stockholder in the secondary offering, will receive net
proceeds from the offering and the repurchase of approximately $2.6 billion and
after these transactions will own approximately 52% of Genworth's common stock.
As previously announced, GE will use the proceeds to eliminate
'parent-supported' debt at GE Capital and enable GE Capital to increase the
dividend it pays GE from 10% of its earnings to 40% commencing in the second
quarter. Genworth will not receive any of the proceeds of the offering.
GE expects, subject to market conditions, to reduce its ownership over the next
two years as Genworth transitions to full independence.
'We're pleased to complete this important next step in the reduction of our
investment in insurance,' said GE Chairman and CEO Jeff Immelt.
'GE's end markets continue to show solid growth, and our businesses are
performing very well. To reflect their strong performance and the impact of the
Genworth transactions, we are increasing our guidance for first-quarter earnings
per share from $.36-$.37 to $.37-$.38, a 16-19% increase over first quarter
2004. We are also reconfirming full-year guidance of $1.76-$1.83 per share,'
A registration statement relating to the public offering was filed with and
declared effective by the Securities and Exchange Commission. This release shall
not constitute an offer to sell or a solicitation of an offer to buy, nor shall
there be any sale of these securities in any state or jurisdiction in which such
offer, solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or jurisdiction. The
offering is being made solely by means of a prospectus. The global coordinator
and bookrunner for the offering is Morgan Stanley. JPMorgan and Merrill Lynch &
Co. are joint lead managers and bookrunners for the offering. Copies of the
final prospectus may be obtained from Morgan Stanley, Attn: Prospectus
Department, 1585 Broadway, New York, New York 10036, tel. (212) 761-4000.
GE (NYSE: GE) is a diversified technology, media and financial services company
dedicated to creating products that make life better. From aircraft engines and
power generation to financial services, medical imaging, television programming,
and plastics, GE operates in more than 100 countries and employs more than
300,000 people worldwide. For more information, visit the company's Web site at
Caution Concerning Forward-Looking Statements
This document contains 'forward-looking statements' - that is, statements
related to future, not past, events. In this context, forward-looking statements
often address our expected future business and financial performance, and often
contain words such as 'expects,' 'anticipates,' 'intends,' 'plans,' 'believes,'
'seeks,' or 'will.' Forward-looking statements by their nature address matters
that are, to different degrees, uncertain. For us, particular uncertainties
arise from the behavior of financial markets, including fluctuations in interest
rates and commodity prices, from future integration of acquired businesses, from
future financial performance of major industries which we serve, including,
without limitation, the air and rail transportation, energy generation and
healthcare industries, from unanticipated loss development in our insurance
businesses, and from numerous other matters of national, regional and global
scale, including those of a political, economic, business, competitive or
regulatory nature. These uncertainties may cause our actual future results to be
materially different than those expressed in our forward-looking statements. We
do not undertake to update our forward-looking statements.
CONTACT: General Electric, Fairfield
David Frail, 203-373-3387