Canada GEN Investment Corp. plans to sell 30 million shares of the country's stock in General Motors Co. to BofA Merrill Lynch and RBC Capital Markets LLC in an unregistered block trade.
The sale was announced late Tuesday and is expected to be completed next week.
Canada GEN is a subsidiary of Canada Development Investment Corp. and holds the country's equity interest in GM. Following the completion of the sale, Canada GEN will hold 110.1 million shares of the Detroit automaker's common stock and 16.1 million shares of its preferred stock.
General Motors has an estimated 1.38 billion common shares outstanding.
Canada and the provincial Ontario government both contributed $13.7 billion Canadian ($13.23 billion) to help bail out GM and Chrysler during the financial crisis, and combined owned about 9 percent of GM's common shares.
The U.S. government, GM's largest shareholder, is also trying to gradually sell off the rest of its stock in GM, which it held as a result of a massive federal bailout. The U.S. plans to exit its investment with GM by April of next year.
Further details about Canada's sale will be made available in the next several days when Canada GEN reports its trade with U.S. and Canadian securities. A representative for the Canadian Department of Finance could not be reached immediately for more information.
Shares of GM added 52 cents to close regular trading at $37 and fell 16 cents in after-hours trading following the announcement. The stock is up 61 percent in the past year.
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