GM Sells Stake as Ally Aims for IPO
General Motors (NYSE:GM) announced on Thursday that it has sold its remaining stake in Ally Financial Inc. for $900 million. The Detroit-based automaker said it expects to record a gain of $500 million from the sale of its 8.5 percent stake in the company, which will be listed as a special item on upcoming financial results.
“This transaction releases capital from a non-core asset and further enhances our financial flexibility,” said Dan Ammann, GM executive vice president and chief financial officer, in a statement from the company. “Ally continues to play an important role in financing our dealers and customers in the United States.”
Ally Financial, which is also based in Detroit, is a bank that was founded by GM to provide loans to General Motors customers. The company was formerly known as General Motors Acceptance Corporation (or, GMAC). Ally was bailed out by the government during the financial crisis, but returned to profitability in 2010.