Saudi prince, Kingdom Holding pay $500Mil to acquire 1% stake in GM

Article by Christian Andrei, on November 24, 2010

$500 million of General Motors Co. shares were bought by Saudi billionaire Prince Alwaleed Bin Talal and his Kingdom Holding Co. through GM’s initial public offering. In a statement, the Riyadh, Saudi Arabia-based company said that it acquired the 1% stake in GM because of the global strength of General Motors brand, the offering price, and growth prospects in Brazil and China.

GM's shares were sold at $33 each in the IPO last week. Earlier, GM had submitted a filing with the Securities and Exchange Commission to offer the shares for $26 to $29 each.

Through this offering, GM raised over $20 billion in common and preferred shares, reducing the US government to a minority shareholder. Matt Therian, an analyst at Renaissance Capital LLC, said that you want to “place shares with investors who aren't going to flip them immediately.”

He said that cornerstone investors come in with “larger, international offerings.” He added that when these are stable shareholders, that should be a positive.

In an interview with Bloomberg Television last week, CEO Dan Akerson said that GM attracted a “high-quality shareholder base” with about 90% of shares held in North America. GM’s offering took place 16 months after emerging from bankruptcy.

GM had been given $49.5 billion in government bailout funds. Alwaleed, at age 55, is No. 19 on Forbes’ list of the world's richest people, with an estimated net worth of $19.4 billion as of March 10. Alwaleed owns 95% of Kingdom Holding, which also holds shares in Apple Inc., Citigroup Inc., News Corp. and PepsiCo Inc. [via autonews - sub. required]

Topics: gm, shares

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

BMW’s 550i xDrive has long been considered as one of the most successful business sedans in the world. For the brand, this may not be enough as it has officially...
by - January 20, 2017
Amazon is now moving beyond the four corners of online retailing. Only recently, the retail giant has been awarded a patent for its Road Network system. Since the patented technology...
by - January 20, 2017
The newest version of the Lamborghini Huracan is not a Superleggera, but a Performante. When Lamborghini filed for a patent for a new name, there were still debates whether this...
by - January 20, 2017
What is hotter and more menacing than a Hellcat? If we ask Dodge, its answer would be the “Demon.” Of course, we aren’t talking about a demon with horns and...
by - January 20, 2017
The 2018 model year could be an exciting year for fans and enthusiasts of the Chevrolet Corvette. This comes as the 2018 version of the Corvette is bound to feature...
by - January 19, 2017
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