General Motors, which runs 12 joint ventures in China, said it had repurchased a 1% stake in its joint venture with SAIC Motor which it sold ahead of its 2009 bankruptcy filing.
The move will increase GM’s ownership of Shanghai General Motors back to 50%, according to a filing with the US Securities and Exchange Commission, China Daily reported.
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GM paid US$119m for the 1% stake, exceeding its proportionate share of the 1% interest in SGM’s net assets by $82m, which comprises the plant, property, equipment and intangible assets, the filing showed.
In February 2010, GM sold the 1% stake to SAIC for $85m.
But GM still retained a 49% share in SGM, a sales business unit set up in November 2011 to sell imported Buick, Chevrolet and Cadillac cars and cars made by SGM.
SGM’s sales reached an all-time high of 1.33m units in 2012, up 10.9% year on year, according to the company’s website.
