Ontario Unloads GM Shares
CBJ – The Ontario government has sold its remaining interest in General Motors.
In a media release, Ontario says it will receive about $1.1 billion from the sale of its outstanding shares. Most of the money will go towards much needed infrastructure projects, including many roads and bridges that are in an abysmal state.
Both the Canadian federal government and the Ontario government acquired GM shares in 2009 after providing about $10.6 billion in aid to the automaker as part of a bailout plan.
Ontario made $4.8 billion in financial assistance available to GM and Chrysler, in partnership with the federal government.
The sale of the shares exceeds the $900 million target included in the 2014 budget for 2014-15 net revenue gains from asset optimization.
Finance Minister Charles Sousa says the transaction signals an important step in growing the economy and investing in public infrastructure.
“The Ontario government is proud to have been able to play an important role in protecting thousands of jobs across the province through its support of the auto sector in 2009,” Sousa said.