GE to sell Apollo Global $ 1 billion in energy investments

(Reuters) – General Electric Co (GE.N) announced Monday its intention to sell a $ 1 billion investment portfolio to Apollo Global Management LLC (APO.N), the American conglomerate abandoning its financial assets to focus on its industrial activities.

GE Capital's equity portfolio includes approximately 20 investments in primarily US-based energy companies, which focus on renewable energy and natural gas production.

GE, which replaced its CEO John Flannery with a surprise move earlier this month by an intruder, Larry Culp, has been divesting multi-billion dollar assets from his financial department since 2015.

The company announced in June a decommissioning plan to divide its health care business and divest its stake in oil services company Baker Hughes (BHGE.N).

The financial terms of the Apollo-GE Capital transaction, expected to be finalized in the fourth quarter of 2018, have not been disclosed.

For Apollo, the deal comes amid a recovery in energy prices as the repurchase company says it is seeking more than $ 4 billion for its third natural resource-focused private equity fund .

RBC Capital Markets, Goldman Sachs and the Bank of Montreal provided financing to Apollo for the transaction.

Citigroup Global Markets Inc., RBC Capital Markets and Goldman Sachs were financial advisors to Apollo, while Bank of America Merrill Lynch and PJT Partners advised GE Capital.

GE shares rose about 1.8% to 13.42 USD early in the session, while those of Apollo lost about 1% to 33.49 USD.

By Friday's close, GE shares had risen about 16.7% since September 28th, the last trading day before Culp announced its new CEO.