773.297.0482, Wabtec Investor Contacts If the transaction is effected via an exchange offer, GE will also file with the SEC a Schedule TO with respect thereto.
Wabtec is currently in the S&P Midcap 400 index, but its current pre-merger market cap is already above many S&P 500 constituents. The combined company, which is expected to have revenues of more than $8 billion in 2019, has a compelling growth profile, especially as market conditions improve in the industries it serves.
GE to merge transportation unit with Wabtec in $11.1 billion deal The Company is committed to maintaining a strong investment grade credit rating profile and will use its strong cash flow to prioritize debt reduction. The date of record for the transaction is February 14th and GE shareholders as of that date will receive ~0.005403 shares of Wabtec for each GE common share owned. When I sell or before? Our teams have made significant progress in integration planning, and this process has only strengthened our confidence in the value creation potential of the combination.
To make the world smarter, happier, and richer. Commercializing GEs technology and IP to accelerate growth and achieve market differentiation. The foregoing list of important factors is not exclusive. General Electric Is Getting Ready to Fire On all Cylinders, Why General Electric Stock Aced an 8% Gain Thursday, U.S. Money Supply Is Doing Something It Hasn't Done in 90 Years, and It May Signal a Big Move for Stocks, Why I Refuse to Chase the Maximum Social Security Benefit, Social Security Cuts May Be Coming. Effective December 2, 2015, General Electric Capital Corporation (GECC) merged with and into GE (the "Merger") to assure compliance with debt covenants as GECC exits the assets planned for disposition.
How Much Will Wabtec Stock Jump After February 25? - SeekingAlpha As a small GE stock owner (roughly 100 shares), I assume I will get cash in my brokerage account. Multiply your number of GE shares on 2/25/19 by 0.005371. Upon closing, Wabtec shareholders will own approximately 49.9%, and it is planned that GE shareholders will own approximately 40.2%, and GE will own 9.9% of the merged company on a fully diluted basis. In some cases additional documents will be required to complete the transfer. As you can see below, existing shareholders will be rewarded with stock, as well as future cash flow and dividends from the new Wabtec. Let's take a look at both sides of the story. CONFERENCE CALL INFORMATION Management has already told investors to expect earnings and, by implication, cash flow to be at the lower end of 2018 guidance -- its most recent guidance implies a $500 million cut in power segment profit, which will be hard to make up elsewhere. Please refer to page two of the Legal Transfer Form for additional document requirements based on your stock transferring situation. You're right, I reversed the figures and corrected my original post. If you hold certificates that you wish to transfer, please follow the steps below: Broadridge Corporate Issuer SolutionsP.O. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. Thank you. The transaction is expected to be tax free to the companies' respective shareholders. Pittsburgh, PA 15212 - USA Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. 86% of retail CFD accounts lose money, Registration on or use of this site constitutes acceptance of our. Sign up for our newsletter and stay up to date with whats happening in Investor news. *Average returns of all recommendations since inception. GE owns common stock and non-voting convertible preferred stock, which together represent approximately a 24.9% economic interest in Wabtec on a fully diluted basis. Locomotive; Freight Car; Freight Services; In the transaction, GE received about $2.9 billion in cash as well as shares of Wabtec common stock and Wabtec non-voting convertible preferred stock that, together, represent an approximately 24.9% ownership interest in Wabtec. Example: Mary Smith is preferred instead of M Smith. If you continue to use this site we will assume that you are happy with it. Those shares were also convertible, meaning Buffett could choose to convert them to common shares. You are urged to consult your tax advisor with respect to the application of U.S. federal tax laws to your particular situation. Specifically, GE Transportation will be first distributed to GE shareholders in a "tax-free spin- or split-off; then immediately merged with Wabtec," according to the deal presentation.. I couldnt find it on the web. GE shareholders own about 24.3 percent of Wabtec on a fully diluted basis. Explore a career with us. Wabtec Corporation is a leading global provider of equipment, systems and value-added services for transit and freight rail. Original Shares. It sounds like GE structured the spinoff as a taxable event, but hard to say for sure without reading the spinoff documents. This information does not constitute tax advice. Valerie Clark 10/25/2022 The exchange ratio for the combined Spin-off/merger transaction is 0.005371, meaning participating GE shareholders will receive 0.005371 shares of Wabtec common stock for each outstanding share of GE common stock held.
Next Stop, Wabtec: GE Completes Spin-Off And Merger Of Its Investors are expected to benefit through ownership of a stronger, more diverse business better positioned to perform through the cycle, with expected annual double-digit EPS growth and total run-rate synergies of about $250 million estimated to be achieved by 2022. In some cases additional documents will be required to complete the transfer. WAB ranks lowest in Sentiment; there it ranks in the 29th percentile. GE Transportation Spinoff And Merger With Wabtec Set, GE Shareholders Wont See Much In Their Portfolios, set to close the restructured merger agreement for its transportation business, After Failed Sale, Arconic Plans Spinoff, But Not Quite Sure Of What It Will Spin Off. Notice to holders of General Electric Company Series D preferred stock. Disclosure: Author holds no position in any stock mentioned. Explore the latest stories, news, downloads, and press tools. I wrote to GE investor relations and received the below response, hope this is helpful, 'The inclusion of the per share dividend amount in income, which is
Payment months are February, May, August, November. How do I know which date 2/25 or 2/26 and if to use the Close or High & Low divided by 2? Wabtec's existing shareholders could own 49.9% of the combined entity and contribute a $2.9 billion cash payment to GE. The deal to merge GE transportation withWestinghouse Air Brake Technologies(WAB -0.07%), or Wabtec, is somewhat complicated but, in general, can be seen as a near-term positive for shareholders. To view documents for private transactions, please log into the password-protected Website, Issuers Determination and Communication of traded on an established securities market Status and Issue Price of Newly Issued Debt, Notice to Holders of certain medium-term notes issued by Subsidiaries of the General Electric Company. On July 27, 2015, Wabtec announced that it plans to purchase 51% of Faiveley Transport's shares in a cash-and-stock deal valued . You can also listen to the webcast by going to Wabtecs new website at www.WabtecCorp.com and clicking on Events & Presentations in the Investor Relations section. Historic cost basis in GE shares is unchanged and irrelevant to determining the
Box 1342Brentwood, NY 11717. If you hold your shares in a brokerage account, the new shares will show up there. Press ESC to cancel. basis of Wabtec shares going forward. Upon completion of the merger, GE shareholders are expected to collectively own approximately 24.3% of the outstanding shares of Wabtec common stock, and current Wabtec shareholders are expected . We were told we will retain the same number of GE share units, but that their value will change. In short, GE needs cash, and many investors may have preferred a deal with a higher cash component rather than the one outlined above. Transfer agents are obligated to ensure that such stamps appear on the transfer documents and are entitled to refuse a transfer of shares if a signature is not guaranteed with a stamp. Note that this is different from having your signature notarized. We're focused on driving ongoing safety, innovation, efficiency, reliability, and productivity. This communication contains forward-looking statements as that term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995, including statements regarding the acquisition by Wabtec of GE Transportation (the transaction) and statements regarding Wabtecs expectations about future sales and earnings.
Wabtec Completes Successful Merger With GE Transportation Read the latest GE financial news releases and stories. GE Transportations innovations help customers deliver goods and services with greater speed and savings using advanced manufacturing techniques and connected machines. Will GE shareholders get shares of Wabtec? Receives 9.9% of shares in new Wabtec and $2.9 billion in cash. I agree the in-product help is in error for the taxable spinoff. If not, it would represent a missed opportunity to possibly bring in some more much-needed cash. The letter of instruction must be accompanied by a Legal Transfer Form bearing the appropriate signature(s). Note that sales are subject to a fee of $10 per transaction plus $0.15 per share sold. Were deeply proud of GE employees around the world rising to the challenge. Split Adjustment 1. Tune in or catch up on GEs latest investor events and reports. The transaction is expected to be tax free to the companies' respective shareholders. For example: Mary Smith Cust Don Smith NY Unif Trans Min Act.
Wabtec and GE Transportation to Merge, Creating - Wabtec Corporation This registration gives sole ownership to the single individual and requires that the person's legal name be used. This website no longer supports the Internet Explorer web browser. GE has decided to merge GE Transportation with Wabtec. Creating the energy technologies of the future and improving the power networks that we depend on today. I received the following email from GE Investor Relations. That's your selling price. Company mailings, including dividends, will reach you through your broker. Today, we meet the total lifecycle needs of the entire fleet, from new locomotives to modernizations, service, and repairs, adding value at every touchpoint to help customers realize the most value from their investment. Explore GEs recent and historic SEC filings. At GE, we are committed to building a more diverse workforce and a more inclusive workplace. Wabtec has also been notified that it will now be included in the S&P 500 Index. $78.06, establishes the shareowners cost basis in Wabtec shares going forward. Wabtec expects to benefit from the cyclical tailwinds the industry saw in 2018, including volume growth of 38 million carloads and intermodal units. Wabtec brings to market a robust installed base of more than 23,000 locomotives globally, an expanded global reach, a strong mix of products and services, as well as enhanced capabilities to drive innovation faster in key growth areas. This communication is not a substitute for any proxy statement, registration statement, proxy statement/prospectus or other documents GE, Wabtec and/or SpinCo may file with the SEC in connection with the proposed transaction. Wabtec is a global provider of equipment and systems services for transit and freight rail. Any forward-looking statements speak only as of the date of this communication. Rafael Santana, who served as president and CEO of GE Transportation and is now president and CEO of Wabtecs Freight segment, said: Our shared focus on innovation, collaboration and continuous improvement will enable us to unlock new value for our shareholders, customers, employees and the industry. The broker will then have the shares transferred from Broadridge to your brokerage account. Access the latest press releases, media contacts, and press tools. To sell shares that are held in a plan, please refer to the FAQ section on "Stock and Dividend Plans. Summary. On December 2, 2015, as part of the GE Debt Assumption and as a result of the Merger, GE succeeded to GECC and assumed the obligations of GECC under all of GECC's outstanding indebtedness and other financial obligations, including: Commercial paper is short-term unsecured senior debt issued in the open market by both financial and nonfinancial companies with strong credit ratings. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. WILMERDING, Pa. and CHICAGO, May 21, 2018 Wabtec Corporation (NYSE: WAB) has entered into a definitive agreement to combine with GE Transportation, a unit of General Electric Company (NYSE: GE). GE also received approximately $2.9 billion in cash at closing. Some plans do require that investors own a minimum number of shares prior to participating in a plan. Following the transaction, Wabtec will have approximately $8 billion in revenues, a more diversified business mix, higher margins, and approximately 15 percent cash EPS accretion in year one. Registering shares in the name of a Trust requires that specific information be provided: the name of the trust and/or the maker or beneficiary and the date of the trust instrument. All told, if GE can maintain its full-year 2018 cash flow guidance and FCF can improve markedly in 2019, then the Wabtec deal will turn out to have been a smart move. Please indicate if the registered stockholder is deceased so the appropriate documents may be forwarded to you. If you wish to move your shares from registered to beneficial ownership, Broadridge or your broker will help you do so. It is headquartered in Pittsburgh, Pennsylvania. Accordingly, EQ will serve as the transfer agent and registrar for GE Common Stock. 2023 Wabtec Corporation. Has been since process revisions were improved, but so few taxable spinoffs come up, the language has not been a problem so far (that I have seen). The 2019 EBITDA multiple range including synergies and tax benefits is approximately 9x, and the 2019 EBITDA multiple range excluding synergies and tax benefits is approximately 11.75x. (If your numbers are universal, you bought Wabtec for 73.96/sh and sold the fractional for 72.7631/sh netting a short-term loss of $1.1969/Wabtec share). Return calculations do not include reinvested cash dividends. For example, GE Transportation is expected to deliver around 300 locomotives in 2018; that compares with an average of around 670 over the last decade. GE's dedicated team, leading technology, and global reach and capabilities help the world work more efficiently, reliably, and safely. Aside from the tax benefit, the merged company is expected to generate $250 million in run-rate synergies by the fourth year after the deal, or around 3.2% of the combined 2017 revenue of GE Transportation and Wabtec. Offering a suite of products to help unlock the full potential of additive manufacturing. Why Shares in General Electric Crushed the Market in March, Why Shares in General Electric Beat the Market Today. GE will not be filing Form 8937 because
GE - WAB spinoff with cash for partial share Quicken GE will designate for nomination three independent Board members. This communication is not a solicitation of a proxy from any investor or security holder. A culture of integrity, compliance, safety, and respect for human rights, while reducing our environmental footprint. Read GEs 2022 Proxy Statement, vote your shares and access the 2022 Annual Meeting. Access GEs recent and historic Annual Reports and accompanying materials. Our technology, global network, and exceptional team is fueled by a missionbuilding a world that works.