ONTARIO has sold its remaining interest in General Motors Company (GM).
The Ontario government will direct the gain of approximately $1.1 billion from the sale into the Trillium Trust. The trust will invest the funds to help build a new generation of public infrastructure that will improve the province’s long-term competitiveness and the well-being of all Ontarians.
The gain on the sale of these shares exceeds the $900 million target included in the 2014 Budget for 2014-15 Net Revenue Gains from Asset Optimization.
The revenue, including the additional $200 million generated, will be directed to Moving Ontario Forward, a $29 billion plan to build a seamless and integrated transportation plan across the province.
The Ontario and federal governments’ financial support to the auto sector in 2009 was crucial in protecting hundreds of thousands of jobs across the province. Ontario made $4.8 billion in financial assistance available to GM and Chrysler, provided in partnership with the federal government. Ontario was the only subnational jurisdiction in North America to invest in protecting the auto sector during the recession.
Investing in infrastructure to keep the province moving is part of the government’s economic plan for Ontario. The four-part plan is building Ontario up by investing in people’s talents and skills, building new public infrastructure like roads and transit, creating a dynamic, supportive environment where business thrives, and building a secure retirement savings plan.
“The Ontario government is proud to have been able to play an important role in protecting thousands of jobs across the province through its support of the auto sector in 2009. Today’s announcement marks an important step in unlocking the value of the province’s assets to continue to grow our economy and invest in public infrastructure for the well-being of all Ontarians,” said Charles Sousa, Minister of Finance.
- Ontario sold its remaining 36.7 million GM common shares over the past two weeks.
- Moving Ontario Forward is the Ontario government’s plan to build a seamless and integrated transportation network across the province to create jobs, boost productivity and help every part of Ontario grow and prosper.