General Motors announced that it will purchase 200 million shares of common stock that are held by the US Department of Treasury for a total of $5.5 Billion. The buyback is part of the Treasury's plan to fully exit its entire holdings of GM stock within 12 months. The treasury intends to begin the disposition as soon as January 2013. In addition it has agreed to relinquish governance rights that were included in the US Treasury Secured Credit Agreement with GM.
The repurchase price of $27.50 per share represents a 7.9% premium over the closing price on December 18th, 2012. Since the auto rescue of 2009, GM has rebounded sharply, investing more than $7.3 Billion into the US Economy and created more than 20,000 jobs.
"We come to work every day grateful that taxpayers from the US and Canada stepped forward to rescue our industry, and are determined to show this extraordinary help was worth it" said General Motors CEO Daniel Akerson.