The United States Treasury has contracted JPMorgan Securities and Citigroup Global Markets to handle the sale of its remaining stake in General Motors, the department disclosed in documents posted on its website on Wednesday. The Treasury currently holds 300 million shares of GM common stock, or 19 percent of The General, after the automaker purchased 200 million shares for $5.5 billion last month.
The financial institutions will be paid one cent for every share they sell, for a maximum fee of $3 million. The Treasury’s documents didn’t contain a timeframe to complete the sale, but the government has stated in December that it will complete the sale of its remaining shares within 12-15 months, based on market conditions.
Whenever the sale takes place, it will mark the government’s exit from the automaker after nearly four years of partial ownership. For what it’s worth, the contracts with JPMorgan and Citigroup run through January 14, 2014, but are capable of being extended in 90-day increments or through a mutual agreement between the parties; the extensions can not go any longer than January 14, 2017.
The GM Authority Take
One step closer! Let’s hope that it doesn’t take until 2017.