GM Selling Stake in Isuzu for $300 Million
Posted on: Tuesday, 11 April 2006, 09:00 CDT
General Motors Corp. is selling its 7.9-percent equity stake in Japan's Isuzu Motors Ltd. for a pre-tax gain of about $300 million.
GM, which said Tuesday its partnership with Isuzu will continue, sold the stake to Mitsubishi Corp., Itochu Corp. and Mizuho Corporate Bank.
The ailing U.S. automaker has held an equity stake in Isuzu since 1971, when it purchased about 34 percent of the Isuzu shares outstanding. Between 1971 and 1998, GM increased its stake to 49 percent from 34 percent.
In 2002 as part of the Isuzu restructuring, GM canceled shares related to its 49 percent stake and invested fresh capital of $500 million primarily for the purchase of certain strategic commercial assets and for a new equity stake of 12 percent in Isuzu.
Between 2002 and 2005 GM's stake in Isuzu was diluted from 12 percent to 7.9 percent, due to conversion of Isuzu's convertible bonds.
Source: United Press International
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