U.S. Treasury said Monday that it received net proceeds of around $489.9 million from the sales of General Motors Inc.'s (GM: Quote) common stock in February.
Treasury happened to own GM shares after the Automotive Industry Financing Program or AIFP was launched in December 2008 to prevent the uncontrolled liquidation of Chrysler and GM as well as the collapse of the U.S. auto industry. The potential for such a disruption at that time had posed a significant risk to financial market stability and threatened the overall economy.
Under AIFP, Treasury invested $49.5 billion to help stabilize and restructure GM. In November 2010, GM's completed an initial public offering. The IPO yielded $13.5 billion in net proceeds for Treasury and reduced its stake in GM to 500.1 million shares.
On December 19, 2012, as part of its efforts to wind down the Troubled Asset Relief Program or TARP, Treasury said it plans to fully exit its remaining investment in GM within the next 12-15 months. As part of that announcement, GM agreed to purchase 200 million shares of its stock from Treasury at $27.50 per share in a transaction that closed on December 21, 2012.
With the latest sale, Treasury has recovered around $29.8 billion of its investment in GM through repayments, sales of stock, dividends, interest, and other income.
GM closed up 1.1 percent on Monday at $28.31.
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by RTT Staff Writer
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