GM can't sell stake in South Korea unit over next five years under rescue deal - South Korea
Reuters
Published May 10, 2018 05:44
GM can't sell stake in South Korea unit over next five years under rescue deal - South Korea
SEOUL (Reuters) - General Motors (N:GM) can't sell any of its 77 percent stake in its troubled South Korean unit over the next five years and has to keep its holding at over 35 percent between 2023 and 2028, South Korea said on Thursday, unveiling details of a new deal with the U.S. automaker.
The restriction on the stake sale in GM Korea was one of tools that will prevent GM from leaving the South Korean market, the nation's Finance Minister, Kim Dong-yeon, told a press conference.
The Detroit car maker and state-run Korea Development Bank (KDB) have agreed on $7.15 billion of investments, including a $2.8 billion debt-for-equity swap for existing loans GM Korea owed to its parent, to rescue the unit. GM and KDB will sign a binding deal on May 11, the minister said.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.