40 million shares of GM common stock is for sale in an underwritten secondary offering from UAW Retiree Medical Benefits Trust
26 Jun 2011 | 743 Views | By Autocar Pro News Desk
UAW Retiree Medical Benefits Trust intends to offer 40 million shares of GM’s common stock in an underwritten secondary offering.
General Motors has announced that the UAW Retiree Medical Benefits Trust (the ‘selling stockholder’ or ‘the VEBA Trust’) intends to offer 40 million shares of GM common stock for ...
This is an Autocar Pro Plus article. Subscribe to continue reading.
UAW Retiree Medical Benefits Trust intends to offer 40 million shares of GM’s common stock in an underwritten secondary offering.
General Motors has announced that the UAW Retiree Medical Benefits Trust (the ‘selling stockholder’ or ‘the VEBA Trust’) intends to offer 40 million shares of GM common stock for sale in an underwritten secondary offering. The announcement was made on February 27, 2018. The Selling Stockholder will receive all of the proceeds from this offering. No shares are being sold by GM.
In connection with the VEBA Trust’s acquisition in 2009 of the shares of GM common stock subject to this offering, the U.S. Department of Labor required the VEBA Trust to appoint an independent fiduciary to make all decisions with respect to the disposition of such shares. Brock Fiduciary Services LLC is the independent fiduciary and investment manager to the VEBA Trust for these shares.
GM also announced that subject to the completion of the offering, it intends to repurchase a portion of the 40 million shares of common stock being offered from the underwriters. It is having an aggregate value of approximately $100 million at a price per share equal to the price per share that the underwriters pay to the VEBA Trust in the offering.
Citigroup and Barclays are acting as underwriters for the offering. The underwriters may offer the shares of common stock, excluding the shares to be repurchased by GM, from time to time in one or more transactions on the NYSE, on the over-the-counter market, through negotiated transactions or otherwise, at market prices, at prices related to market prices or at negotiated prices.