US Gov’t to Sell Remaining Chrysler Stake to Fiat
Italian carmaker Fiat will buy the remaining six percent stake of the United States government in Chrysler for $560 million, the Treasury Department said in a statement on Thursday.
The United States government on Thursday said that it will sell its remaining shares in Chrysler Motor Inc. to Italian carmaker Fiat.
In statement, the US Treasury Department said that the agreement includes selling out its remaining six percent equity stake in Chrysler, which will net Washington some $560 million.
Under the terms of agreement, Fiat will pay some $500 million for the US government’s remaining 98,461 shares of Chrysler.
The proceeds of the deal would include the sale of the US government’s interest in United Auto Workers healthcare trust fund, worth $75 million.
In 2009, the Obama administration has invested some $12.5 billion to the troubled automaker as part of the bailout package provided to the US auto industry.
Under the Troubled Asset Relief Program, the government eventually brought Chrysler, and General Motors Corp., from brankruptcy.
Once the transaction with Fiat is completed, the US government will have received a total of $11.2 billion back in interest, principal repayments, and cancelled commitments from Chrysler.
“It is unlikely for the US government to fully recover the amount invested in Chrysler, which is a difference of $1.3 billion,” the agency said in the statement.