General Motors acquires larger stake in GM Daewoo

Article by Christian Andrei, on August 26, 2010

General Motors was the sole subscriber to a KRW491.2bn (US$412.7m) rights offer. In particular, GM's stake in troubled South Korean unit GM Daewoo has increased to 70.1% from 51% while key creditor Korean Development Bank's (KDB) stake fell to 17% from 28%.

In a statement, Mike Arcamone, president and CEO of GM DAT, said that the completion of the equity rights issue strengthens GM DAT's liquidity and balance sheet position and that the company looks forward to resume its strong growth. 

Arcamone said that it is "grateful for the support and confidence" of its major shareholder. Meanwhile, Nick Reilly, head of GM International Operations, also released a statement saying that GM's decision to increase its equity in GM DAT denotes the importance of the Korean business unit to GM's global operations.

He said that further actions with regards to the longer term funding structure of GM Daewoo will only be considered if necessary.

Wayne Brannon, head of Chevrolet Europe, said that this development underlined GM's commitment to GM DAT and to Chevrolet in Europe and around the world.

Brannon said that GM DAT has been an "integral part" of General Motors' global engineering, design and manufacturing network for the past seven years. [via autonews]

Topics: gm

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Back in 2009, Nissan first introduced the Nissan Leaf, the company’s first all-electric vehicle. LEAF stands for Leading Environmentally-friendly Affordable Family car and this particular EV has been considered as...
by - December 3, 2016
In the minivan segment, the 2017 Chrysler Pacifica is already impressive in terms of fuel economy figures – as rated by the United States Environmental Protection Agency. In fact, the...
by - December 2, 2016
Having a blacked-out Bentley Mulsanne Speed is already menacing by itself but by naming it as the Bamford X, it became all the more imposing. This model was made by...
by - December 2, 2016
We have good news for those who are waiting for the latest version of the Mazda CX-5 compact crossover. It was just unveiled in November at the 2016 Los Angeles...
by - December 2, 2016
Those familiar with racing know that Marco Wittmann’s win during the 2016 Deutsche Tourenwagen Masters held last May was noteworthy as it was his second title in four seasons. In...
by - December 2, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries