Istanbul, Nov. 14 (DHA) - General Electric Co. said it plans to sell up to 20 percent of its majority holding in oil services company Baker Hughes, providing around 4 billion dollars in cash for the struggling conglomerate, The Wall Street Journal reported.
GE had been prevented from selling its stake in Baker Hughes until July 2019 as part of the agreement that formed the company, when GE combined its oil and gas business with Baker Hughes. GE said it plans to maintain a stake above 50 percent in Baker Hughes after the transactions.
GE had told investors in June it planned to sell down its 62.5 percent stake in Baker Hughes as part of a restructuring plan to raise cash and breakup the conglomerate. Investors have worried about the company’s high debt load and losses in its core power division.
GE has also agreed to sell its locomotive business and spin off its health-care unit. The agreement with Baker Hughes announced Tuesday marks the first major portfolio move by Chief Executive Larry Culp, who took over on Oct. 1 and has tried to reassure investors that he is putting the company on the path to growth after two years of turmoil.