Ontario government sells remaining interest in GM for $1.1B
Sale comes six years after federal, Ontario governments provided about $10.6 billion in aid to automaker during recession
The Ontario government said it will gain approximately $1.1 billion from the sale, adding that the funds will be invested to help build a “new generation” of public infrastructure.
Both the federal and Ontario governments acquired GM shares in 2009 after providing about $10.6 billion in aid to the automaker.
Ontario made $4.8 billion in financial assistance available to GM and the former Chrysler Group LLC, now known as FCA US LLC, in partnership with the federal government.
The provincial government said the gain on the sale of the shares exceeds the $900-million target included in the 2014 budget for 2014-15 net revenue gains from asset optimization.
Finance Minister Charles Sousa said the sale marks an important step in unlocking the value of the province’s assets to grow the economy and invest in public infrastructure.
“The Ontario government is proud to have been able to play an important role in protecting thousands of jobs across the province through its support of the auto sector in 2009,” Sousa said in a release.