Dec 12 General Motors Co has sold its
remaining 8.5 percent stake in Ally Financial Inc,
its former auto finance arm, for $900 million, the carmaker said
GM said the transaction will result in a $500 million gain
to be treated as a special item in the fourth quarter.
The identity of the buyers of the unlisted Ally shares was
not immediately known. A GM spokesman declined to disclose who
purchased the stake.
Ally, formerly known as GMAC, was a unit of GM until private
equity firm Cerberus Capital Management bought a majority stake
in the lender in 2006. Burned by bad mortgages that its
subsidiary Residential Capital made during the housing bubble,
Ally later received a $17.2 billion federal bailout.
Ally has taken steps to streamline operations since then,
including selling many of its international businesses.
In November, Ally sold $1.3 billion of unlisted shares to a
group of investors, a transaction that helped enable the bank to
make a $5.9 billion payment to the U.S. Treasury, which still
has majority ownership.. Ally has repaid around
70 percent of the taxpayer funds it had received.
News of the sale comes a day after a federal judge approved
the bankruptcy exit plan of ResCap, Ally's home loan subsidiary,
which declared bankruptcy in 2012 to limit the damage from
ongoing mortgage woes.