The United States Department of Treasury is slowly but surely divesting its stake in General Motors, staying on course to fulfill a December 2012 pledge that it would sell its holding in the carmaker within 12-15 months. According to the department's monthly report to Congress, the Treasury received total net proceeds of about $877 million from sales of GM common stock in July 2013.
GM’s bankruptcy reorganization in 2009 was ultimately financed by the US and Canadian governments. Canada has also commenced the process of divesting its holdings in GM. The carmaker’s stock traded between $34 and $37 a share in July, which may mean that the US government sold around 24 million to 26 million shares of stock based on the market price.
The carmaker’s shares closed down 13 cents to $35.85 in Tuesday trading. GM has repurchased 200 million shares of its stock from the US Treasury since the Treasury announced the plan its remaining 300 million shares in December. In the first stock sale in April, the Treasury sold 58 million shares of GM common stock, earning around $2 billion in net proceeds.
In June, the Treasury sold 30 million shares of GM stock in a public offering as part of the carmaker’s comeback to the S&P 500 index, earning $1.03 billion in proceeds. The Treasury said that as of July 31, 2013, it has already recovered around $35 billion of its initial $51 billion investment in GM via repayments, sales of stock, dividends and other income.