GE received approximately $2.9 billion in cash as well as shares of Wabtec common stock and Wabtec nonvoting convertible preferred stock that together represent an approximately 24.9 percent ownership interest in Wabtec. GE's transportation unit to merge with Wabtec in a deal valued at $11.1 Ultimately, GE agreed to unwind its ownership in the combined company (subject to certain limitations) over the next three years, but not in the 30 days immediately post close. Current Value % Return 33.32%. As we previously reported, GE Transportation has a long history of innovation, stretching from the first electric locomotives to the first freight locomotive that meets the U.S. governments strictTier 4 emission standards. Deia Campanellideia [dot] campanelli [at] wabtec [dot] comclass="spamspan" Image source: Getty Images. We're focused on driving ongoing safety, innovation, efficiency, reliability, and productivity. As a small GE stock owner (roughly 100 shares), I assume I will get cash in my brokerage account. If you continue to use this site we will assume that you are happy with it. Access the latest press releases, media contacts, and press tools. What is the tax basis for the WAB shares received by GE holders? Here's the step by step, (having eliminated everything that was downloaded to you): Do you know why I would receive .395 shares on 3/1/19 after receiving 18 on 2/25/19? Following the completion of the transaction, Wabtecs corporate headquarters will remain in Wilmerding, Pa. Wabtecs Freight Segment will be headquartered in Chicago, and Wabtecs Transit Segment headquarters will remain in Paris. Wabtec, GE, expect to close locomotive maker deal by February - Trains Box 64854 Summary. Normally a corporation will have documentation on their website with a basic formulas to calculate the subsequent tax basis. Confirm that Broadridge is the transfer agent - our namewill usually appear on your account statement. Note that the in-product QWin 2019 Help for a taxable spin-off would have you enter a Misc Income for the dollar value of the spin-off and an Add rather then Buy for the new shares. Under the agreement, which has been approved by the Boards of Directors of Wabtec and GE, GE will receive $2.9 billion in cash at closing and GE and its shareholders will receive a 50.1% ownership interest in the combined company, with Wabtec shareholders retaining 49.9% of the combined company. We will keep you updated if there is a change. GE's innovation engine where ideas become reality to create a better world and deliver differentiated tech across the company's industrial portfolio. 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. Change your elections by completing the form on your account statement and returning it to Broadridge. Ithas also expanded heavily into software and thelucrative business of locomotive upgrades. Since GE Transportation is only expected to start to rebound from a cyclical low in 2018, even the EV/EBITDA multiple for 2019 is still likely to reflect cyclicallylow earnings. 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. It also provides aftermarket services. The signature(s) must be guaranteed by a financial institution participating in an officially recognized Medallion Signature Guarantee Program (see below). Press ESC to cancel. A custodial registration for a minor is a common form of this registration type. Capitalize on digital/electronic technologies to develop autonomous capabilities:Bringing together GE Transportations digital solutions with Wabtecs electronic systems is expected to drive the advancement and implementation of technology solutions to improve safety, efficiency and productivity for the transportation industry. The Motley Fool has a disclosure policy. On May 21, 2018, GE and Wabtec confirmed the merger of GE Transportation with Wabtec in an $11 billion deal, completed on February 25, 2019, that saw Wabtec shareholders take a 50.8% shareholding in the merged . Tune in or catch up on GEs latest investor events and reports. When I sell or before? At GE, we are committed to building a more diverse workforce and a more inclusive workplace. If you own stock through a broker, sign up at Broadridge. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Company mailings, including dividends, will reach you through your broker. If the stock issuer supports these stock options, you may deposit your certificated share(s) into the DRS Book Entry form or Plan form in order to sell through Broadridge. GE shareholders will directly own approximately 24.3% of Wabtec on a fully diluted basis and GE will own common stock and non-voting convertible preferred stock which together represent approximately a 24.9 percent economic interest in Wabtec on a fully diluted basis, up from the 9.9 percent stake that GE would have owned under the originally . GE encourages investors to visit these websites from time to time, as information is updated and new information is posted. 773.297.0482, Wabtec Investor Contacts basis of Wabtec shares going forward. WILMERDING, PA, (Feb. 25, 2019) Wabtec Corporation (NYSE: WAB) announced today it has completed its merger with GE Transportation, a former business unit of GE (NYSE: GE). Wabtec is focused on performance that drives progress, creating transportation solutions that move and improve the world. EQ Shareowner Services is GEs transfer agent and administers all matters related to stock that is directly registered with GE. Wabtec has obtained full commitments for a $2.9 billion bridge facility and expects to put in place permanent debt financing prior to closing. Shares have done quite well, resulting in higher earnings multiples awarded to the business, with the valuation getting quite full here. 2023 Broadridge Financial Solutions, Inc. 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. It sounds like GE structured the spinoff as a taxable event, but hard to say for sure without reading the spinoff documents. Although this figure is lower than the 5% many analysts assume for mergers, there are a couple of things to consider that suggest Wabtec is onto a good thing. GE Transportation has received $3.6 billion in orders in the last two quarters. The companys average rating score is 2.71, and is based on 5 buy ratings, 2 hold ratings, and no sell ratings. GE Completes Spin-off Of GE Transportation Into Wabtec - Insider 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 . If you want to sell your shares of GE stock, please contact GEs current transfer agent, Equiniti Trust Company (EQ). GE's dedicated team, leading technology, and global reach and capabilities help the world work more efficiently, reliably, and safely. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. Securities and Exchange Commission (SEC) regulations define the financial institutions that are eligible to provide such signature guarantees, e.g., commercial banks, brokers, credit unions, savings and loan institution. 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. However, it will do little to appease dyed-in-the-wool bears worried about the sustainability of the company's dividend and restructuring prospects. 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. 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. Once you notify us of your certificate loss, we will initiate the process for you and then ask that you finalize the paperwork and submit the appropriate payment for processing. 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 pays a dividend of $0.32 per share. You will find the information under the "Plan Purchase Options" section of the website. ", Broadridge Corporate Issuer Solutions P.O. Overview of General Electric Capital Corporation merger with and into GE. As you can see below, existing shareholders will be rewarded with stock, as well as future cash flow and dividends from the new Wabtec. All comments, concerns and complaints can be addressed via phone or e-mail to: To view GE Form 8937 attachment, click here, GE HealthCare Distribution Ratio Frequently Asked Questions, https://www.ge.com/news/press-releases/ge-announces-board-of-directors-for-future-independent-ge-healthcare-confirms-target. Wabtec Corporation is a leading global provider of equipment, systems and value-added services for transit and freight rail. Neither GE nor Wabtec undertakes any obligation to update any forward-looking statements, whether as a result of new information or development, future events or otherwise, except as required by law. WAB scores best on the Quality dimension, with a Quality rank ahead of 85.16% of US stocks. GE shareholders own about 24.3 percent of Wabtec on a fully diluted basis. According to the Association of American Railroads, automation will help improve network velocity and fluidity, potentially saving railroads billions of dollars annually. You can also access the link by going to www.wabtec.com and clicking on the Webcasts tab in the Investor section. This fee structure was not changed as part of the switch to, Avoid Losing Your Shares to the State as Unclaimed Property. I received the following email from GE Investor Relations. In a sense, GE is covering its 2018 dividend by borrowing money and relying on asset sales. Wabtec's existing shareholders could own 49.9% of the combined entity and contribute a $2.9 billion cash payment to GE. 2023-03 GE SCF Investor Report (PDF, 180 KB), 2022-12 GE SCF Investor Report (PDF, 70 KB), 2022-09 GE SCF Investor Report (PDF, 71 KB), 2022-06 GE SCF Investor Report (PDF, 182KB), 2022-03 GE SCF Investor Report (PDF, 182KB), 2021-12 GE SCF Investor Report (PDF, 182KB), 2021-09 GE SCF Investor Report (PDF, 181KB), 2021-06 GE SCF Investor Report (PDF, 71KB), 2021-03 GE SCF Investor Report (PDF, 79KB), 2020-12 GE SCF Investor Report (PDF, 64KB), 2020-09 GE SCF Investor Report (PDF, 72KB), 2020-06 GE SCF Investor Report (PDF, 72KB), 2020-03 GE SCF Investor Report (PDF, 79KB), 2019-12 GE SCF Investor Report (PDF, 380KB), 2019-09 GE SCF Investor Report (PDF, 383KB), 2019-06 GE SCF Investor Report (PDF, 369KB), 2019-03 GE SCF Investor Report (PDF, 353KB), 2018-12 GE SCF Investor Report (PDF, 59KB), 2018-09 GE SCF Investor Report (PDF, 88KB), 2018-06 GE SCF Investor Report (PDF, 88KB), 2018-03 GE SCF Investor Report (PDF, 88KB), 2017-12 GE SCF Investor Report (PDF, 87KB), 2017-09 GE SCF Investor Report (PDF, 35KB), 2017-06 GE SCF Investor Report (PDF, 160KB), 2017-03 GE SCF Investor Report (PDF, 160KB), 2016-12 GE SCF Investor Report (PDF, 160KB), 2016-09 GE SCF Investor Report (PDF, 155KB), 2016-06 GE SCF Investor Report (PDF, 160KB), 2016-03 GE SCF Investor Report (PDF, 160KB), 2015-12 GE SCF Investor Report (PDF, 159KB), 2015-09 GE SCF Investor Report (PDF, 159KB), 2015-06 GE SCF Investor Report (PDF, 175KB), 2015-03 GE SCF Investor Report (PDF, 154KB), 2014-12 GE SCF Investor Report (PDF, 158KB), 2014-09 GE SCF Investor Report (PDF, 159KB), 2014-06 GE SCF Investor Report (PDF, 161KB), 2012-12 GE SCF Investor Report (PDF, 155.0KB), 2012-09 GE SCF Investor Report (PDF, 155.0KB), 2012-06 GE SCF Investor Report (PDF, 155.0KB), 2012-03 GE SCF Investor Report (PDF, 156.0KB), 2011-12 GE SCF Investor Report (PDF, 154KB), 2011-09 GE SCF Investor Report (PDF, 156.0KB), 2011-06 GE SCF Investor Report (PDF, 157.0KB), 2011-03 GE SCF Investor Report (PDF, 100.0KB), 2010-12 GE SCF Investor Report (PDF, 101.0KB), 2010-09 GE SCF Investor Report (PDF, 100.0KB), 2010-06 GE SCF Investor Report (PDF, 101.0KB), 2010-03 GE SCF Investor Report (PDF, 101.0KB), 2009-12 GE SCF Investor Report (PDF, 101.0KB), 2009-09 GE SCF Investor Report (PDF, 98.8KB), CAUTION CONCERNING FORWARD LOOKING STATEMENTS.