Baker Hughes, a GE company will buy back up to $3billion of its common units from BHGE and GE.
The company will use the proceeds from the sale of its BHGE common units to buy back its class A shares.
BHGE will also issue new debt.
BHGE chief executive Lorenzo Simonelli said: “Today’s announcement represents an important step in our plan to optimize BHGE’s capital structure. We believe the buyback is an attractive use of cash given the value of our franchise and the highly accretive nature of this program
“At the current share price, this repurchase represents approximately 8% of the company’s outstanding shares.
“We are pleased that BHGE’s strong balance sheet enables us to not only return value to shareholders through our regular quarterly dividend and share repurchases, but also invest in opportunities that will strengthen our fullstream portfolio and drive long-term growth.”