US: Government sells stake in Ally Financial, the former financial arm of GM image

The US Treasury announced Thursday it expected to sell 410,000 shares of Ally Financial, formerly GMAC, bringing its ownership stake in the company down to 37%.

In December, the Treasury divested itself of its final holdings in General Motors, which it also helped with taxpayer funds in the financial crisis of 2008-09. The government will sell shares for $7,375 apiece, generating about $3 billion. That will leave the government with about 572,000 shares of the Detroit-based auto lender, the Treasury said in a statement. The Ally shares will be sold in a private offering.

“This is a very positive outcome for Ally and for the US taxpayer, and the strong investor interest is a testament to the significant transformation of the company,” Ally said in a news release.

Citigroup Global Markets and BofA Merrill Lynch acted as the placement agents of the private offering of Ally shares; Lazard is serving as the Treasury’s financial adviser.