Stockholders nod for Baker Hughes-GE merger

Business & Finance

More than 99% of the votes cast by Baker Hughes stockholders on Friday were in favor of the previously announced combination of Baker Hughes with General Electric Company’s oil and gas business (GE Oil & Gas).

The combination will create Baker Hughes, a GE company, which will be traded on the New York Stock Exchange (NYSE) under the ticker symbol “BHGE”.

Shares voted at the meeting represent approximately 86% of Baker Hughes’ shares outstanding as of the record date for the meeting, Baker Hughes said in a statement on Friday.

Martin Craighead, chairman and chief executive officer of Baker Hughes said, “Today’s results are an important milestone in our efforts to build the leading oil and gas fullstream company, uniquely positioned to achieve the productivity gains the industry needs. This compelling combination brings together best-in-class oilfield technology and services, manufacturing capabilities and digital offerings for the benefit of all customers and stakeholders.”

Baker Hughes and GE expect to close the transaction to combine Baker Hughes and GE Oil & Gas on Monday, July 3, 2017, subject to the satisfaction or waiver of customary closing conditions. Baker Hughes and GE also expect that shares of common stock of Baker Hughes Incorporated (NYSE: BHI) will continue to trade on the NYSE until the close of the NYSE on July 3, 2017, at which point Baker Hughes will be delisted from the NYSE.

The parties also expect that shares of Class A common stock of Baker Hughes, a GE company, will begin trading under the ticker symbol “BHGE” on the opening of the NYSE on July 5, 2017.

Lorenzo Simonelli, president and chief executive officer of GE Oil & Gas and a boss of the new company, said, “I want to congratulate Baker Hughes on this approval and thank Martin and the Baker Hughes team for their exceptional partnership. In just eight months, our teams have worked around the clock to create a new company that will deliver a differentiated offering for our customers, incredible opportunities for our combined employees and value creation for shareholders.”

Stockholders of Baker Hughes immediately prior to the closing of the transaction will receive one share of Class A common stock of Baker Hughes, a GE company and will also be entitled to a special one-time cash dividend of $17.50 per share, to be paid on July 6, 2017. Following the closing of the transaction and during the NYSE trading day on July 3, 2017, Baker Hughes will be quoted on the NYSE with the value of the special one-time cash dividend of $17.50 per share.