General Motors Company (NYSE: GM) late today announced the sale of its Class A Membership Interest in Delphi Automotive LLP (Delphi) back to Delphi for $3.8 billion. GM acquired the Class A Membership Interest in October 2009 in conjunction with the creation of a reorganized Delphi.
GM will report a book gain of approximately $1.6 billion in the first quarter of 2011 related to the sale.
“We are systematically delivering on our commitment to strengthen and simplify our balance sheet,” said Dan Ammann, GM senior vice president and chief financial officer as of April 1. (See Another GM Top Management Change as CFO Liddell Resigns)
Earlier this month, GM sold its Ally Financial Series A preferred stock for $1.0 billion in a registered public offering. The Ally transaction will result in a book gain of $0.3 billion to be recorded in the first quarter of 2011.
GM owned GMAC outright until 2006, when it sold a 51% for $7.4 billion to an investment by Cerberus Capital Management LP. Subsequently U.S. taxpayers bailed out a bankrupt GMAC and now hold 74% of Ally. (See General Motors Sells All of Its Ally Preferred for $1 Billion)
