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GE to sell $1 billion of energy investments to Apollo Global

(Reuters) - General Electric Co (GE.N) said on Monday it plans to sell a portfolio of $1 billion (765.5 million pounds) in energy investments to Apollo Global Management LLC (APO.N), as the U.S. conglomerate sheds assets in its finance arm to focus on its industrial business.

GE Capital's equity portfolio includes about 20 investments in mostly U.S.-based energy companies that focus on renewable energy and natural gas-fired generation.

GE, which replaced its Chief Executive Officer John Flannery in a surprise move earlier this month with outsider Larry Culp, has been divesting assets worth billions of dollars from its finance unit since 2015.

The company in June announced a breakup plan, which calls for spinning off its healthcare business and shedding its stake in oil services company Baker Hughes (BHGE.N).

Financial terms of the Apollo-GE Capital deal, which is expected to close in the fourth quarter of 2018, were not disclosed.

For Apollo, the deal comes amid a recovery in energy prices, with the buyout firm reported https://in.reuters.com/article/apolloglobal-energyfund/apollo-seeks-to-raise-more-than-4-billion-for-third-natural-resources-fund-sources-idINKBN1HH3CY to have been seeking to raise more than $4 billion for its third natural resources-focused private equity fund.

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

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

GE's shares were up about 1.8 percent at $13.42 in early trading, while Apollo's shares were down about 1 percent at $33.49.

Up to Friday's close, GE's stock had risen about 16.7 percent since Sept. 28, the last trading day before the company announced Culp as the new CEO.


(Reporting by Ankit Ajmera in Bengaluru; Editing by Shailesh Kuber and Anil D'Silva)

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