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.