GM will buy its 200 million shares from the US Treasury today, December 21st.
On Wednesday, December 19th, GM announced it will buy the 200 million shares for $27.50 each, reaching a total sum of $5.5 billion. The rest of 300.1 million shares will be sold in the following 15 months, according to the market conditions, through stock offerings or other means. Details regarding the transaction were revealed in a letter from GM Chief Financial Officer Dan Ammann to Timothy Massad, Treasury’s assistant secretary for financial stability.
According to the filling from GM to the US Securities & Exchange Commission, the Treasury waives its right to inspect the automaker’s books, property and records, and also the ban on GM using a corporate jet, although he pay restrictions agreed upon during the 2009 bailout will remain in place until the government will totally exit the company. The Obama administration invested $49.5 billion in GM to help the automaker survive amid the economic downturn in 2009 and avoid bankruptcy.
“This announcement is an important step in bringing closure to the successful auto industry rescue, it further removes the perception of government ownership of G.M. among customers, and it demonstrates confidence in G.M.’s progress and our future,” said GM CEO Dan Akerson.