LONDON/FRANKFURT -- DaimlerChrysler said it raised more than $900 million by selling its 10.5 percent stake in Hyundai Motor Co. Ltd. on Monday, a remnant of its dented ambitions to build a global carmaking empire.
DaimlerChrysler, the world's fifth-biggest automaker, is unwinding its alliance with Hyundai but said it will continue joint projects with its Korean partner.
"Our proceeds were just over $900 million," a Daimler spokesman said. He would not comment on how or when DaimlerChrysler would account for the gain.
DaimlerChrysler paid $428 million for 10 percent of Hyundai in June 2000, but raised the stake in 2001 to 10.5 percent. In all, it paid around $571.6 million for the entire stake.
"Our projects continue, world engine and the like," the spokesman added, referring to a joint campaign with Hyundai and Mitsubishi Motors Corp. to develop and manufacture petrol engines.
Daimler also distributes some Hyundai models in Mexico and they work together on procurement.
DaimlerChrysler mandated broker Goldman Sachs to sell 45.8 million global depositary receipts to financial institutions on its behalf. Goldman sold the shares at $19.92 each, raising $912 million.
The stock was sold at a discount to the traded price of 5 percent, which banking sources said was one of the tightest among Asian deals this year.
The companies announced on May 12 that DaimlerChrysler would sell its stake after the partners scaled back a four-year-old alliance in commercial vehicles and cars.
The news came just weeks after Daimler pulled the plug on further financial aid to struggling Japanese ally Mitsubishi.
The moves blew a hole in the ambitious Asia plans of Chief Executive Juergen Schrempp, who once dreamed of creating a global carmaking empire dubbed "World Inc".
No comment was immediately available from Hyundai.