Suzuki Motor Corporation made an announcement today concerning the sale of Suzuki shares by General Motors Corporation with a mutual agreement to continue the implementation and expansion of the business relationship between the companies.
Suzuki and GM have maintained a constructive business relationship that dates back to August 1981. The companies have agreed to be committed to continue promoting and implementing not only our existing projects, including development collaboration on advanced automotive technologies, but also collaboration on entries in new emerging markets.
The above agreement is based on a recent dialogue between Rick Wagoner, Chairman and CEO, General Motors Corporation, and Osamu Suzuki, Chairman and CEO, Suzuki Motor Corporation. This has been supported and already approved by both GM and Suzuki boards by today. They also confirmed to give positive consideration on a possibility for GM to repurchase Suzuki shares in the future.
GM plans to sell 16,413,000 Suzuki shares, which is equal to 3 percent of Suzuki’s total issued common stock, on the open market on 18 November. Suzuki will utilize the TSE-sanctioned TosTNET-2 (pre-announcement based, treasury stock purchasing system) to purchase the equivalent number of shares to be sold by GM as its treasury stock through the open market.
The purchasing price will be the closing price today of JPY1,363/share. The total amount is estimated to be JPY22,370,919,000. The funds required to purchase the stock will come out of Suzuki’s own internal reserve.
“Suzuki and GM have been constantly exchanging frank opinions on various topics as business partners. As GM taking this particular step to sell the shares it owns as a step toward strengthening its balance sheet is very understandable, we wanted to support GM’s decision. We confirmed each other in a conference call with Wagoner-san and me that all individual initiatives will be pursued as they are today. There will be no impact on Suzuki’s current business plan.”