Posted by: Ian Rowley on November 17, 2008
Recent talk surrounding carmakers selling stakes in Japan has revolved around rumors that Ford may cash in part of its stake in Mazda. Today, though, Suzuki revealed that it is the subject of the latest money raising exercise by an American automaker. After the Tokyo market closed today, Suzuki revealed that GM will sell its remaining 3.2% stake in the Japanese automaker for about $230 million on Tuesday morning. “We are responding to GM’s need to let go of its stake to raise funds,” Suzuki Chairman Osamu Suzuki noted a statement. The deal marks an end to GM’s 27-year equity relationship with GM.
Suzuki will buy the same amount of shares in off-hours trading. GM last cuts its stake in Suzuki from 20% to 3.2% in March, 2006. That sale, a time when Suzuki’s stock was more than double its current price, raised $2 billion.