General Motors bought Daewoo new shares for 413 million dollars

General Motors Co bought all the new shares offered to shareholders of concern to South Korean unit of Daewoo for $ 413 million, executives said GM Daewoo on Friday. The U.S. automaker will also consider further financial assistance if necessary.

GM agreed to subscribe for the whole package while the other shareholders, including the Korean Development Bank (CDB), SAIC Motor Corp and Suzuki Motor, showed no interest, the report said the South Korean company. GM could consider greater financial assistance to his unit, said earlier Nick Riley (Nick Reilly), head of GM Asia Pacific.

GM owned 51% of the Korean automaker. Earlier, Korea Development Bank said that if the U.S. giant did not invest additional funds in the development of GM Daewoo, the bank will require repayment of loans and foreign currency forward contracts with maturities expiring. Last month, GM Daewoo announced its intention to attract 491.2 billion won ($ 424.1 million) by selling new shares to existing shareholders. CBD required to increase this amount at least twice. GM and the CBD was unable to reach an understanding on this issue.

After the refusal of the CBD to participate in the procedure of purchase of new shares of its stake in Daewoo fell from 28% to 17%. The share of General Motors rose to 70,1%.

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