You are using an older browser version. Please use a supported version for the best MSN experience.

Canadian Government Sells its Remaining Shares in GM

Motor Trend logo Motor Trend 4/7/2015 Jake Holmes

The Canadian government announced today that it will sell the remainder of its General Motors shares to Goldman, Sachs & Co. The Canadian government's investment corporation said it owns 73 million shares of GM stock, which it purchased during GM's bankruptcy restructuring in 2009.

The share sale will take place on Friday, April 10, and The Detroit News reports the sale could be worth about $2.7 billion based on the current price of GM stock. The Canadian and Ontario governments initially paid about $10 billion for a stake in GM as part of the company's bailout process.

General Motors Ren Center 2© Provided by MotorTrend General Motors Ren Center 2

As part of the bailout agreement in 2009, GM said it would continue to build 17-20 percent of its North American vehicles in Canada, add a total of five models at Canadian plants, and build a hybrid model in Canada.

The U.S. Treasury, for its part, finished selling off its larger stake in GM by December 2013. However, because the price of GM shares had dropped over that period, the Treasury reportedly lost $10.5 billion on its bailout of the Detroit automaker. The government-funded bailouts had led to many critics referring to GM as “Government Motors” for several years.

Sources: Canada GEN, The Detroit News


More from Motor Trend


image beaconimage beaconimage beacon