According to a report from Bloomberg, the Canadian Government is planning to sell its stake in General Motors and has already begun to search for investment banks who may be interested. The news doesn’t exactly come as a surprise, since Finance Minister Jim Flaherty announced back in December that Canada wanted to eventually sell its shares of GM stock.
Together, the Federal and Ontario Government hold 140 million common shares, a 10% stake, which is valued at $5.1 billion according to the report. The Canadian Government is the third largest GM shareholder, behind the US Treasury and GM Voluntary Employee Beneficiary Association.
“The government of Canada remains committed to exiting from ownership of GM as quickly as feasible, while maximizing the value of the government’s interests for Canadian taxpayers,” Kathleen Perchaluk, a spokesperson for the country’s Finance Minister said in a e-mailed statement last week.
Canada’s stake in GM stemmed from a $9.5 billion investment in General Motors during the company’s bailout in 2009.
GM stock has gained 11 percent since the Automaker decided to sell shares to the public in November of 2010 and has gained 27 percent this year alone.