General Motors NYSE:GM buys back stake in Shanghai venture with SAIC
General Motors NYSE:GM buys back stake in Shanghai venture with SAIC
General Motors Co paid $119-M in September to buy back a 1% stake in its joint venture with its top Chinese partner SAIC Motor Corp, which it had given up ahead of its Y 2009 bankruptcy, GM disclosed in a filing with the US Securities and Exchange Commission Friday.
The deal pushed GM’s ownership in Shanghai GM back to 50%. However, SAIC retains a 51% share in the sales side of the business.
In the run-up to its Y 2009 bankruptcy filing, GM sold the 1% share to SAIC for $85-M.
Thursday, GM Chief Financial Officer Dan Ammann said that the Detroit company had completed the repurchase of the 1% stake in Shanghai GM and the Chinese government approved the purchase last year.
GM and its Chinese joint ventures sold 2.8-M vehicles in China in Y 2012, making up about 30.5% of global GM sales of 9.3-M units last year.
This indicates that China continues to be the biggest market for GM for the 2nd year running, trade news portal www.bitauto.com reported Saturday.
After the share buyback, the number of directors appointed by GM on the board of their joint venture Shanghai GM will increase to 6 from 5, and those appointed by SAIC will remain at 6, the website reported.
GM and SAIC have co-built 3 production bases in Shanghai, Yantai and Shenyang since Y 1997, and altogether these production bases contain four whole-vehicle manufacturing facilities and two powertrain plants, it said.
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