Internationalized: China’s SAIC Buys 1 Percent Of New General Motors0
Not to be lost among all the hoopla surrounding the GM Initial Public Offering is the fact that Shanghai Automotive Industry Corporation (SAIC) has been able to purchase nearly a one percent stake in General Motors. SAIC, better known as GM’s partner in its main China joint venture, paid $33 a share for 0.97 percent of GM, totaling a cost of nearly $500 million.
The companies said that the purchase is intended to amplify their partnership in the world’s largest auto market.
“We are happy with SAIC’s decision to participate in GM’s public offering. GM has enjoyed a strong partnership with SAIC over the past 14 years,” said Tim Lee, President of GM International Operations, in a statement.
SAIC said that it would raise the funds for the purchase in Hong Kong’s financial markets and din’t give any further details on this plan. The partnership recently posted record sales in October and are on track to sell more than 2 million vehicles in China this year.
So, does SAIC’s near one percent ownership in GM change your opinion about the state of affairs of the IPO and/or The General? Let us know in the comments!
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