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]