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GM to Sell Equity Stake in Suzuki
GM to Sell Equity Stake in Suzuki.
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[{"type":"text","content":"\n \n \n General Motors to Sell 17.4 Percent Equity Stake in Suzuki \n \n Will retain 3 percent, continue strategic alliance \n \n DETROIT, March 6 -- General Motors Corp. (NYSE: GM) today \nannounced it would reduce its equity stake in Suzuki Motor Corp. from 20.4 \npercent to 3.0 percent, by selling 92.36 million shares. The strategic \nalliance between GM and Suzuki will continue. \n GM plans to sell these Suzuki shares, representing 17.4 percent of the \nshares outstanding, through the Suzuki open-market buyback program and through \nmarket sales if necessary. \n GM currently holds a total of 108.66 million Suzuki shares, which had a \nclosing price of JPY 2500 per share on March 3 on the Tokyo Stock Exchange. \nBased on this market value, GM expects to realize cash proceeds of \napproximately U.S. $2 billion from the sale of 92.36 million Suzuki shares, \nwhich will enhance the strength of GM's balance sheet and liquidity position. \n 'GM has a great deal of respect and admiration for Suzuki based on our \nlong and productive history of working together,' said Rick Wagoner, GM \nchairman and CEO. 'Our relationship is strong, and we look forward to our \ncontinued partnership. This transaction will allow us to preserve our \nbusiness relationship, while further building up GM's already significant \nliquidity position during this critical phase of our turnaround.' \n GM has held an equity stake in Suzuki since 1981, when it purchased \napproximately 5.3 percent of the Suzuki shares outstanding. GM's stake was \ndiluted to 3.5 percent in subsequent years, but in 1998 GM increased its \nholding in Suzuki to 10 percent, and to slightly over 20 percent in 2001. \nDuring this time, the companies have been involved in various joint projects \nin product development, advanced technology, global purchasing and supply \nchain management, and product distribution. Specific projects including \ncollaboration in fuel cell and hybrid systems development, joint operation of \nCAMI Automotive, Inc. in Canada, the manufacture of a new medium-size SUV at \nthe joint venture facility, and the cross-supply of OEM vehicles will \ncontinue. In addition, GM and Suzuki plan to work together on a proposed new \nautomatic transmission program. \n The sale by GM of a 17 percent equity stake in Suzuki, including cash \nproceeds received and any potent...