Baker Hughes Company Enters into Binding Term Sheet with General Electric Company

Strategic Insights -

Baker Hughes Company ("Baker Hughes"), a leading oil and gas equipment and services provider, has filed a Form 8-K with the Securities and Exchange Commission (SEC) announcing the entry into a binding term sheet with General Electric Company ("GE"). The term sheet, executed on December 29, 2022, outlines the terms for the settlement of certain disputes and the termination of the Tax Matters Agreement (TMA) between the parties. Under the agreement, GE will surrender its ownership in Baker Hughes Holdings LLC (BHH LLC), and both parties will work towards finalizing definitive agreements by February 15, 2023.

Key Takeaways:

  • Baker Hughes Company entered into a binding term sheet with General Electric Company on December 29, 2022, to settle disputes and terminate the Tax Matters Agreement (TMA).
  • The term sheet provides that GE will surrender its ownership in Baker Hughes Holdings LLC (BHH LLC) and settle certain disputes under the TMA.
  • The parties will work together to enter into definitive agreements by February 15, 2023, reflecting the terms of the term sheet.
  • A non-refundable payment of $21 million was made by NewCo LLC to GE as a net settlement of claims asserted by the parties under the TMA.
  • The term sheet includes dispute resolution procedures for any disputes arising under the agreement.
  • The TMA and any rights or obligations under the agreement terminated effective as of the date of the term sheet.

Statistics:

  • $21 million: The non-refundable payment made by NewCo LLC to GE as a net settlement of claims asserted by the parties under the TMA.
  • December 29, 2022: The date on which the binding term sheet was executed between Baker Hughes Company and General Electric Company.
  • February 15, 2023: The proposed deadline for the parties to finalize definitive agreements reflecting the terms of the term sheet.

Sources:

  • UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): December 29, 2022.