GM plans to sell these Suzuki shares, representing 17.4 per cent of the outstanding shares, through the Suzuki open-market buyback program and through market sales if necessary.
GM currently holds a total of 108.66 million Suzuki shares. Based on this market value, GM expects to raise approximately $2 billion from the sale of 92.36 million Suzuki shares.
‘GM has a great deal of respect and admiration for Suzuki based on our long and productive history of working together,’ said Rick Wagoner, GM chairman and CEO.
‘Our relationship is strong, and we look forward to our continued partnership. This transaction will allow us to preserve our business relationship, while further building up GM's already significant liquidity position during this critical phase of our turnaround.’
GM has held an equity stake in Suzuki since 1981, when it purchased approximately 5.3 per cent of the Suzuki shares outstanding.