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GM Sells Suzuki Stake
17 November 2008
Suzuki Motors has agreed to buy 16,413,000 Suzuki shared from GM, equivalent to 3% of Suzuki’s total issued common stock, on the open market on 18 November. Total amount of the purchase is estimated to be ¥22.371 billion (US$232 million).
The two companies also agreed to continue the implementation and expansion of their business relationship that dates back to August 1981. This includes not only existing projects, including development collaboration on advanced automotive technologies, but also collaboration on entries in new emerging markets.
The agreement is based on a recent dialogue between Rick Wagoner, Chairman and CEO, GM, and Osamu Suzuki, Chairman and CEO, Suzuki Motor Corporation. Both boards have already approved the transaction.
Suzuki and GM have been constantly exchanging frank opinions on various topics as business partners. As GM taking this particular step to sell the shares it owns as a step toward strengthening its balance sheet is very understandable, we wanted to support GM’s decision. We confirmed each other in a conference call with Wagoner-san and me that all individual initiatives will be pursued as they are today. There will be no impact on Suzuki’s current business plan.
—Osamu Suzuki
November 17, 2008 in Brief | Permalink | Comments (4) | TrackBack (0)
Comments
Posted by: stomv | November 17, 2008 at 06:47 AM
Osamu Suzuki sounds like a VERY intelligent gentleman who has strengthened his relationship with GM for the future.
Posted by: sulleny | November 17, 2008 at 10:42 AM
GM in 2006 had 20% of Suzuki. Suzuki purchased 17% then, at JPY 2,490/share, and is now purchasing the remaining 3%
for JPY 1,360/share. At the above USD price, Suzuki is worth USD 7.7billion, about 3 times more than GM's current market cap. Suzuki-san is getting his company out of the path of a falling dinosaur.
Posted by: John Schreiber | November 17, 2008 at 11:21 AM
"Well that will help GM stay in business another few days anyway..."
8.6 days I heard.
Posted by: DS | November 17, 2008 at 06:51 PM
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Well that will help GM stay in business another few days anyway...