General Electric is changing its original plan to spin off its health unit and will instead sell off almost half the business, CNBC reports.
Four things to know:
1. In June 2018, GE revealed plans to spin off its healthcare business into a standalone enterprise that would be led by GE Healthcare President and CEO Kieran Murphy. At the time, GE planned to sell 20 percent of the health unit and distribute the rest to its shareholders tax-free, according to CNBC.
2. When GE abruptly removed CEO John Flannery in October, industry analysts said the company's plan to spin off its health unit may no longer be certain, implying that the company may sell an even greater portion of it.
3. During a post-earnings conference call Jan. 30, Mr. Flannery's successor GE CEO Larry Culp confirmed the speculation.
"We expect to monetize just up to under 50 percent of our healthcare business. [The health unit] continues to prepare for public company separation, and that is progressing very well," Mr. Culp said, according to CNBC. In December, GE initiated the separation and confidentially filed to take the health unit public.
4. According to Mr. Culp, GE's intention to sell off part of the health unit, coupled with the company's other planned spinoffs, could "provide sources of roughly $50 billion," CNBC reports.