General Motors to Sell $3.8 Billion Delphi Shares

General Motors announced on March 31 that it had decided to sell shares of Delphi Automotive LLP, a supplier of automotive systems and components, for a total value of approximately $3.8 billion.

Delphi said the company has signed an agreement with General Motors Corp. and the U.S. federal government to buy back shares of the company worth 4.394 billion U.S. dollars. This move is an active preparation for the company’s initial public offering (IPO).

It is understood that Delphi will repurchase 3.8 billion U.S. dollars worth of shares from GM and the remaining 594 million U.S. dollars will be purchased from Pension Benefit Guaranty Corp.

It is reported that Delphi shares held by GM were purchased in October 2009, when Delphi was undergoing restructuring. Delphi, one of the largest auto parts companies in the world, was a subsidiary of General Motors. In 1999, Delphi left GM for independent development.