GM raises the Daewoo stake

Posted on Friday, 23 October 2009 , 18:10:37 byEmil

Filed under daewoogmkdbshareskoreagm-datchevroletDaewooGMAsianAmerican

GM raises the Daewoo stake

U.S. builder's General Motors piece in South Korean automaker Daewoo raised from 51 up to 70.1 % as a direct result of the 412 million Dollars offer of rights to which General Motors was the subscriber, the only one. As a result, KDB (Korean Development Bank's) slice decreased from 28 down to 17 %. KDB did refused the subscription, as said, it's waiting now for a bigger offer on the rights, as did all the other minority holders there, Suzuki and Shanghai Automotive.

Mike Arcamone, GM DAT CEO stated, quoted 'The successful completion of the equity rights issue significantly strengthens GM DAT's liquidity and balance sheet position as we look to resume our strong growth. We are grateful for the support and confidence of our major shareholder'.

Wayne Brannon, chief of Chevrolet Europe continued 'With today's news, GM has underlined its commitment to GM DAT and to Chevrolet in Europe and around the world. Over the past seven years, GM DAT has become an integral part of General Motors' global engineering, design and manufacturing network'.

Nick Reilly, General Motors International Operations said 'GM's decision to increase its equity in GM DAT signifies the importance of our Korean business unit to GM's global operations. GM DAT will continue to play a significant role in the success of the new GM's global business'.

But, KDB and General Motors failed reaching an understanding about the forecasted won 1 trillion support money for Daewoo. The bank offers you the capital to GM only if the Americans bring up a long-term plan, good for the Korean model.