Ontario Sells GM Shares to Fund Road, Transit Projects

The Ontario government sold its last shares of General Motors stock to raise cash for highway and public transportation projects.

Charles Sousa, the province’s finance minister, told the Toronto Globe and Mail that the sale is expected to raise $1.1 billion, which will go to the Trillium Trust fund and will be earmarked for transportation infrastructure improvements the province plans over the next 10 years.

Sousa did not disclose the number of shares sold or the price per share. In the fall of 2013, Ontario reported that it held nearly 37 million GM common shares and 5.4 million preferred shares.

Canada’s federal government still has 73.4 million GM shares.

Ontario received the stake in the automaker as part of GM’s 2009 Chapter 11 bankruptcy restructuring after it provided $3.6 billion as part of GM’s bailout. The Canadian federal government delivered $7.2 billion in aid in exchange for about 12 percent of the company’s common stock.

Ontario has previously sold some GM shares. GM also repaid loans it received from the province.

Unifor, the union that absorbed the Canadian Auto Workers, has expressed its preference that the federal and provincial governments hold onto some of their stakes in GM. That, Unifor leaders have suggested, would provide leverage to obtain future investments at GM factories in Oshawa, Ingersoll and St. Catharines, Ont.

GM has not allocated any redesigned models to its two Oshawa assembly plants, which could close later this decade.

On Friday afternoon, GM shares were down 22 cents at $36.03.