— The government sold the rest of its holdings — 73,389,831 shares — in GM on Monday to Goldman, Sachs & Co. in an unregistered block trade.
— Goldman, Sachs & Co. was selected through a two-stage, competitive process, said Finance Department spokesman David Barnabe. In the first stage, Barnabe said a group of investment banks — each with significant trading activity in GM stock and extensive experience in large block sales — were chosen.
He said the second stage called on the banks to present their bids for all of the government's remaining GM shares. The process closed Monday with Goldman, Sachs & Co. emerging as the winning bidder.
— The value of taxpayers' remaining GM stake was more than $3.3 billion Monday, based on a US$36.66 price at the close and an exchange rate of $1.2473.
— The government says details on the proceeds from the sale will not be available until the deal passes through U.S. and Canadian securities regulators, expected in the coming days.
— The deal was made to "eliminate a market exposure" and "ensure a good return for Canadian taxpayers, following the advice of independent experts and consistent with best commercial practices," Barnabe said.
— Ottawa needed to make $4 billion in proceeds from its remaining shares to break even on its original 2009 investment, which was part of the effort to bail out GM.
— The Finance Department has said the value of the GM stock was initially booked at about $1.1 billion. A net gain or loss from the sale would be the total proceeds minus the book value.
— Therefore, the government would reap a net gain of $2.2 billion if the shares were sold at the current market valuation of about $3.3 billion.
— A sale of $3.3 billion would also leave the government only $700 million short of breaking even on the original investment.