Archive for the ‘Financial News’ Category

GM DAT Raises US$412 Million in Equity Rights Issue Through an Investment by its Majority Shareholder, General Motors

Friday, October 23rd, 2009

Seoul — October 23, GM Daewoo Auto & Technology Co. (“GM DAT”) announced today that it raised KRW 491.2 billion (US$412 million) in an equity rights issue through an investment by its majority shareholder, General Motors Company (“GM”). GM DAT will use the proceeds, which will be received by October 28, for general corporate purposes, including funding the repayment of maturing debt.

Other shareholders in GM DAT — the Korea Development Bank (“KDB”), Suzuki Motor Corp. (“Suzuki”) and Shanghai Automotive Industry Corp. Group (“SAIC”) — chose not to subscribe to the equity rights issue. In the absence of other shareholders exercising their rights, GM decided to subscribe for the entire issue. (more…)

General Motors and Koenigsegg Group AB Reach Tentative Agreement on Saab

Tuesday, June 16th, 2009

Zurich — General Motors Corp. and Koenigsegg Group AB, a consortium led by Koenigsegg Automotive AB, today confirmed the details of a memorandum of understanding for the purchase of Saab Automobile AB that secures Saab's future.

The sale, expected to close by the end of the third quarter of this year, includes an expected $600 million funding commitment from the European Investment Bank (EIB) guaranteed by the Swedish government. Additional support is to be provided by GM and Koenigsegg Group AB to fund Saab's operations and product program investments. This includes plans to launch several new products that are in the final stages of development. Saab had filed for reorganization under Swedish Law on Feb. 20, 2009. This tentative agreement is a key milestone for Saab to successfully emerge from its reorganization process. (more…)

Magna Confirms Offer for Opel

Friday, May 22nd, 2009

Aurora, Canada/PRNewswire/ — Magna International Inc. (TSX: MG.A, NYSE: MGA) today confirmed that, together with Sberbank Rossii (“Sberbank”), it has submitted a non-binding indicative offer for Opel. The offer contemplates a total investment by Magna and Sberbank of Euro 700 million, a portion of which would be guaranteed by the German government. Under the offer, the proposed equity interests in Opel would be: General Motors — 35%; Sberbank — 35%; Magna — 20%; and Opel employees — 10%.

General Motors and the German government are reviewing and considering offers submitted this week and will determine the next steps in the sale process.

There is no assurance that any transaction will result from Magna's current involvement. (more…)

Ford to Change Ownership Stake in Mazda

Tuesday, November 18th, 2008

Hiroshima — Mazda Motor Corporation (Mazda) has announced today that Mazda and several of its strategic business partners will acquire a part of Ford Motor Company's (Ford) shares in Mazda through market trading.

As a result, the ratio of Ford's ownership of Mazda stock will be reduced from 33.4 percent to just over 13 percent, with the new agreement allowing the two companies to continue their strategic relationship that spans nearly 30 years.

“The sale of Mazda shares by our partner, Ford, will not result in any change in Mazda's strategic direction and we will continue to accelerate our product-led brand improvement and cost innovation initiatives,” says Mazda's Chairman, President and CEO, Hisakazu Imaki. (more…)

Ford Motor Company Announces Agreement to Sell Jaguar Land Rover to Tata Motors

Wednesday, March 26th, 2008

Dearborn, MI — Ford Motor Company [NYSE: F] announced today that it has entered into a definitive agreement to sell its Jaguar Land Rover operations to Tata Motors.

The transaction is the culmination of Ford's decision last August to explore strategic options for the Jaguar Land Rover business, as the company accelerates its focus on its core Ford brand and “One Ford” global transformation.

The sale is expected to close by the end of the next quarter and is subject to customary closing conditions, including receipt of applicable regulatory approvals.

The total amount to be paid in cash by Tata Motors for Jaguar Land Rover upon closing will be approximately US $2.3 billion. At closing, Ford will then contribute up to approximately US $600 million to the Jaguar Land Rover pension plans. (more…)