General Motors Corp. has entered into a memorandum of understanding (MoU) with a buyer for HUMMER. The sale is expected to close by the end of third quarter of this year and is subject to customary closing conditions, including receipt of applicable regulatory approvals.
Under terms of the MoU, the identity of the purchaser and proposed financial terms of the agreement are not being released at this time. As part of the proposed transaction, HUMMER will continue to contract vehicle manufacturing and business services from GM during a defined transitional time period. For example, under the proposed agreement, GM’s Shreveport Assembly plant would continue to contract assemble the H3 and H3T through at least 2010.
Other terms and conditions specific to the sale are not being disclosed at this time. Citi acted as financial advisor to General Motors Corporation.
Adam Opel. Adam Opel GmbH, the reconstituted GM Europe, has received the first draw in the amount of €300 million (US$427 million from the €1.5 billion bridge financing agreement with the German government. This allows its operations to maintain adequate liquidity as a more independent European Opel/Vauxhall company continues normal operations, while its US parent is undergoing its court-supervised sale process.
Adam Opel GmbH had secured approval for a €1.5 billion bridge loan agreement with the German government on Monday, which provides sufficient time to finalize the partnership agreement with Magna International Inc.. Magna International and General Motors Europe had signed a Memorandum of Understanding to continue work on finalizing a partnership agreement for Opel/Vauxhall. (Earlier post.) With this funding, the European operations are isolated from any financial impact by GM’s situation in the US.