Why GE Is Trading Higher On Tuesday Premarket?

General Electric Co GE plans to form three global public companies focused on the growth sectors of aviation, healthcare, and energy.
The company to pursue a tax-free spin-off of GE Healthcare, creating a pure-play company at the center of precision health in early 2023, in which GE expects to retain a stake of 19.9%. GE also intends that Healthcare will issue debt securities, the proceeds of which will be used to pay down outstanding GE debt.
GE Renewable Energy, GE Power, and GE Digital to be combined into one business, positioned to lead the energy transition, and then pursuing a tax-free spin-off of this business in early 2024.
Post the spin-offs, GE will be an aviation-focused company shaping the future of flight. Through the transition, GE will monetize its stakes in AerCap Holdings NV AER and Baker Hughes Co BKR, prioritizing further debt reduction.
GE will retain other assets and liabilities of GE today, including run-off insurance operations.
The company expects to incur one-time separation, transition, and operational costs of ~$2 billion and tax costs of less than $0.5 billion.
GE said it is on track to reduce debt by more than $75 billion by the end of 2021.
Price Action: GE shares are trading higher by 6.71% at $115.7 during the premarket session on Tuesday.

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