Business
GM Completes the Sale of Controlling Interest i...
GM Completes the Sale of Controlling Interest i....
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[{"type":"text","content":"\n \n GM Completes the Sale of a Controlling Interest in GMAC\n\n DETROIT, Nov. 30 -- General Motors Corp. (NYSE: GM) today announced that \nit has completed the sale of a 51-percent interest in GMAC to a consortium of \ninvestors led by Cerberus FIM Investors, LLC and including wholly owned \nsubsidiaries of Citigroup Inc., Aozora Bank Ltd. and The PNC Financial \nServices Group, Inc. \n The transaction will preserve the mutually beneficial relationship between \nGM and GMAC, while improving GMAC's access to cost-effective funding. In \naddition, the sale of the controlling interest in GMAC will provide \nsignificant liquidity to GM that will support its North American turnaround \nplan, finance global growth initiatives and strengthen its balance sheet. \n \"This has been a year of significant actions and progress for GM, as we \naggressively execute our North America turnaround plan and position the \ncompany for long-term growth and profitability. Successfully completing the \nGMAC transaction has been a key priority for the company, and an important \nstep to further support GM's turnaround,\" said GM Chairman and Chief Executive \nOfficer Rick Wagoner. \"This transaction will result in a stronger GMAC, with \nenhanced access to funding at lower costs and greater opportunities for growth, \nincluding leveraging their traditionally strong relationships with GM dealers. \n \"Although GMAC will have a new majority owner, GM and GMAC will remain \nstrategic partners through various long-term agreements. GM will retain a \n49 percent ownership stake in GMAC, and the close operating relationship \nbetween the companies will continue,\" Wagoner said. \"We look forward to \nworking with the Cerberus-led consortium as majority owners of GMAC in the \nfuture. All the parties are committed to maintaining a high degree of service \nto our dealers by providing the right wholesale, retail and lease products to \nsupport the sale of GM cars and trucks.\"\n GM expects to receive approximately $14 billion in net cash proceeds and \ndistributions over three years, after repayment of intercompany debt but \nbefore purchases of preferred equity in GMAC. This includes a $7.4 billion \npurchase price, a $2.7 billion cash dividend from GMAC and other transaction \nrelated cash flows including the monetization of certain retained assets. GM \nand ...