Finance

Canada Sells Remaining Interest in GM

April 7, 2015

“Our investment in GM was always meant to be temporary. We never believed the government should be a shareholder of a private sector company for an indefinite period of time,” said Canada’s Finance Minister Joe Oliver.

Adrienne Selko

Canada’s Finance Minister Joe Oliver today announced on April 7 the divestiture of his country’s remaining interests in General Motors (IW 500/5). It is estimated to be worth about $7 billion.

Canada GEN Investment Corp, (Canada GEN) sold all of Canada’s remaining GM common shares (73,389,831 shares) to Goldman, Sachs & Co in an unregistered block trade. Further details about the share sale will be made available when Canada GEN reports its trade with U.S. and Canadian securities regulators in the next several days.

“With today’s announcement, we have eliminated a market exposure for Canadian taxpayers and returned GM to private sector ownership, having supported its continued contribution to the Canadian economy,” Oliver said. “As we said from the start, our investment in GM was always meant to be temporary. We never believed the government should be a shareholder of a private sector company for an indefinite period of time.”

David Welch of BloombergBusiness reports that the sale comes two months after Ontario sold its remaining 36.7 million shares of General Motors for about $34 a share. That sale resulted in C$1.55 billion in gross proceeds and generated a profit of C$1.1 billion after taking into account the book value of the shares, the government said at the time.

The sale is especially useful for the country's budget as Welch points out.

Extra revenue of more than C$2 billion would give the federal government more leeway to fund new measures as it prepares to release its pre-election budget on April 21.

Harper announced C$27 billion in additional tax cuts and transfer payments over six years in October. That included a controversial measure that will allow couples with children to divide their income for tax purposes. Harper has said those cuts won’t be financed by deficits -- effectively borrowing -- a practice he pledged to end this year.

About the Author

Adrienne Selko | Senior Editor

Focus: Workforce, Talent

Follow Me on Twitter: @ASelkoIW

Bio: Adrienne Selko has written about many topics over the 17 years she has been with the publication and currently focuses on workforce development strategies. Previously Adrienne was in corporate communications at a medical manufacturing company as well as a large regional bank. She is the author of Do I Have to Wear Garlic Around My Neck? which made the Cleveland Plain Dealer's best sellers list. She is also a senior editor at Material Handling & Logistics and EHS Today.

Editorial mission statement: Manufacturing is the enviable position of creating products, processes and policies that solve the world’s problems. When the industry stepped up to manufacture what was necessary to combat the pandemic, it revealed its true nature. My goal is to showcase the sector’s ability to address a broad range of workforce issues including technology, training, diversity & inclusion, with a goal of enticing future generations to join this amazing sector.

Why I find manufacturing interesting: On my first day working for a company that made medical equipment such as MRIs, I toured the plant floor. On every wall was a photo of a person, mostly children. I asked my supervisor why this was the case and he said that the work we do at this company has saved these people’s lives. “We never forget how important our work is and everyone’s contribution to that.” From that moment on I was hooked on manufacturing.

I have talked with many people in this field who have transformed their own career development to assist others. For example, companies are hiring those with disabilities, those previously incarcerated and other talent pools that have been underutilized. I have talked with leaders who have brought out the best in their workforce, as well as employees doing their best work while doing good for the world.