GM Daewoo Raises KRW 491.2 Billion in Equity Rights Issue

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2009-10-23 13:21

Seoul--(뉴스와이어)--GM Daewoo Auto & Technology Co. (“GM Daewoo”) announced today that it raised KRW 491.2 Billion in an equity rights issue through an investment by majority shareholder, General Motors Company (“GM”). GM Daewoo will use the proceeds, which will be received by October 28, for general corporate purposes, including funding the repayment of maturing debt.

Other shareholders in GM Daewoo, the Korean Development Bank (“KDB”), Shanghai Automotive Industry Corporation and Suzuki Motor Corporation chose not to subscribe to the equity rights issue. In the absence of other shareholders exercising their rights, GM decided to subscribe for the entire issue.

“The successful completion of the equity rights issue significantly strengthens GM Daewoo’s liquidity and balance sheet position as we look to resume GM Daewoo’s strong growth,” said Mike Arcamone, President & Chief Executive Officer of GM Daewoo. “We are grateful for the support and confidence from our major shareholder.”

“GM’s decision to increase its equity in GM Daewoo signifies the importance of the Korean business unit to GM’s global operations,” said Nick Reilly, President, GM International Operations. “GM Daewoo will continue to play a significant role in the success of the new GM’s global business.”

On August 28, 2009, the GM Daewoo Board of Directors approved the issuance of 162,689,343 new shares in GM Daewoo at a price of KRW 3,019 per share to improve the company’s liquidity position and bolster its balance sheet.

“Any further actions relating to the longer term funding structure of GM Daewoo will be considered if necessary,” said Reilly.
With this subscription, outstanding shares and equity stakes are as follows:

Common Shares: 415,481,799

GM: 70.1%
KDB: 17%
Suzuki: 6.8%
SAIC: 6.0%

GM Daewoo Auto & Technology was established on October 17, 2002. It has five manufacturing facilities in Korea as well as an assembly facility in Vietnam. In addition, GM Daewoo provides market and brand-specific vehicle kits for assembly at GM facilities in China, Thailand, India, Colombia and Venezuela. In 2008, GM Daewoo sold in Korea and exported more than 1.9 million units, including CKD products. GM Daewoo now produces vehicles and kits that are offered in more than 150 markets on six continents. More information on GM Daewoo and its products can be found on the company’s website at http://media.gmdaewoo.co.kr/.

웹사이트: http://media.gm-korea.co.kr