The Canadian government has started looking for investment banks to divest its stake in General Motors Co., a person privy with the matter told Bloomberg. Canada, however, has yet to decide when to conduct the sale. Sky News reported that the Canadian government has asked investment banks to make pitches in next days for the share-sale mandate.
Canadian Finance Minister Jim Flaherty remarked in December 2012 that they have no intention to be a long-term shareholder in GM, in which the federal and Ontario governments together hold 140 million common shares, equivalent to a 10-percent stake. The holdings are valued at $5.1 billion at the current stock price, according to data compiled by Bloomberg.
Kathleen Perchaluk, a spokeswoman for Flaherty, told Bloomberg in an e-mail that that Canada remains committed to exiting from GM “as quickly as feasible,” while maximizing the “value of the government's holdings for taxpayers."
In December 2012, GM disclosed that the United States Treasury planned to sell all of its shareholdings in the carmaker within 15 months. Canada GEN Investment Corp., the agency that oversees the stake for the federal and Ontario governments, has employed investment bank Rothschild Canada Ltd. as advisor on the GM holdings. The federal government owns two-thirds of Canada’s holdings in GM, while the Ontario government controls the remaining third. Canada and the province of Ontario invested $9.5 billion in GM as part of the carmakers bailout in 2009.