Ontario has decided to sell its General Motors shares in the following year as it plans to review its state-owned assets.
“Some assets may no longer serve a public good,” Finance Minister Charles Sousa said. “One good example is our shares in GM.”
The Minister added that the government will carefully analyze the market conditions to see when it would be the most profitable to sell the shares in the following year. Ontario will also assess its Liquor Control Board of Ontario, utilities Hydro One Inc. and Ontario Power Generation Inc. The province will prepare a panel which will advise on the state-owned assets that will be led by Ed Clark, Toronto-Dominion Bank Chief Executive Officer.
In September, Ontario and Canadian governments signed a deal to sell 30 million shares in US automaker General Motors, worth around $1.1 billion to Royal Bank of Canada and Bank of America Corp. in a block trade. This would cut their stake by 21% to 110 million shares. The Ontario and Canadian governments are the second largest shareholder in the car maker.
“To maximize the value of these assets to the province, they will look at measures such as efficient governance, growth strategies, corporate reorganization, mergers, acquisitions, and public-private partnerships,” Sousa said.
“The council will give preference to continued government ownership of all core strategic assets.”