The Canadian government has recently signed a deal that would see its stake of almost 73.4 million shares it has in General Motors to Goldman, Sachs & Co, according to an investment division of the government.
When the sale will be complete, the Canadian government would have divested all of its remaining shares in the largest US automaker, also the third biggest carmaker in the world. The Canadian government acquired a stake in the automaker back in 2009 when it went bankrupt following the last Great Recession. Together with the US government, Canada took a stake in the ailing company to protect jobs and the investments it had in the country. Canada GEN Investment Corp announced the buyout, an unregistered block trade, should be complete on April 10. The unit didn’t offer any details on the price or value set for the share sales. Canada GEN is a wholly owned subsidiary of Canada Development Investment Corporation, who controlled the GM equity interest belonging to Canada.
According to a statement that accompanied the announcement, the purchase would be made in US dollars and then it would be converted into Canadian dollars “gradually over a period of time”, and the move follows a similar one by the Canadian province of Ontario two months ago when it also sold its last shares in the Detroit company for about 1.1 billion Canadian dollars. The stocks were part of the initial contribution to the General Motors 2009 bailout, when the central government and the Ontario province collectively helped GM with at least $10 billion Canadian dollars. Since the bailout both the US government and Canadian officials started to slowly divest their stakes in the automaker, allowing it to become once more publicly controlled.