Mubasher: General Electric (GE) plans to sell millions of shares in the energy services company Baker Hughes, relinquishing its majority stake, aiming to raise around $3 billion in cash.

Based on the current share price of Baker Hughes, GE would generate around $2.9 billion, with the 105-million-stock secondary offering and $250 million share repurchase by Baker Hughes, sending the US conglomerate’s stake well below 40%, the Wall Street Journal (WSJ) reported.

GE’s stake was worth around $12.5 billion at Tuesday’s closing price, while Baker Hughes’ shares settled at $24.11, as its stocks fell by around 4%.

However, this would trigger a more-than-$7-billion accounting charge, as the oil-field services firm’s market value fell, when compared with that under GE’s management.

It is worth noting that GE has been selling its stake to both leave the business and raise funds to pay its debt pile.

Last year, it sold a $4 billion stake, after recording a $2.2 billion loss on the deal, slashing its ownership from 62.5% to 50.2%.