- The 1-for-8 reverse stock split for GE (NYSE:GE) is now in effect. These are the details.
A couple of months ago, GE (NYSE:GE) announced that it will proceed with the 1-for-8 reverse stock split previously approved by GE shareholders at the annual meeting of shareholders on May 4, 2021. GE common stock will start trading on a split-adjusted basis on August 2, 2021.
In the announcement about the reverse stock split, GE Senior Vice President and Chief Financial Officer Carolina Dybeck Happe said that GE had divested a number of businesses over the last several years — including nearly all of GE Capital — without any corresponding adjustments to reduce the share count. “The reverse stock split will better align GE’s number of shares outstanding with companies of our size and scope,” added Happe.
For every 8 shares of GE common stock issued and outstanding or held as treasury shares as of the effective date will be automatically combined into 1 share of GE common stock. And this will reduce the number of outstanding shares of GE common stock from approximately 8.8 billion to approximately 1.1 billion.
Concurrently with the reverse stock split, GE’s amended certificate of corporation will also proportionately reduce the number of shares of GE common stock authorized for issuance and reduce the par value of GE common stock to $0.01 per share. The outstanding GE equity-based awards and shares or share units under GE benefit plans will be proportionately adjusted. No fractional shares are going to be issued in connection with the reverse stock split. The shareholders of record otherwise entitled to receive a fractional share as a result of the reverse stock split will receive a cash payment in lieu of such fractional shares.
GE common stock is going to continue trading on the New York Stock Exchange (under the symbol “GE”), but will trade under a new CUSIP number, as well as on the London Stock Exchange (under the symbol “GEC”), Euronext Paris (under the symbol “GNE”), the SIX Swiss Exchange (under the symbol “GE”) and the Frankfurt Stock Exchange (under the symbol “GEC”), but will trade under a new ISIN number starting today.
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