SEOUL -- General Motors Co. bought all of the new shares offered by its struggling South Korean unit for $413 million, and GM will consider further aid if necessary, GM Daewoo said Friday, Oct. 23.
GM decided to subscribe to the entire rights offering as other shareholders, including Korea Development Bank, SAIC Motor Corp. and Suzuki Motor, did not join the offering, GM Daewoo Automotive & Technology said.
Last month, GM Daewoo said it planned to raise about $413 million by selling new shares to existing shareholders.
GM would consider more financial help for the South Korean unit, said Nick Reilly, president of GM International Operations.
"Any further actions related to the longer term funding structure of GM Daewoo will be considered if necessary," Reilly said in a statement.
GM is barred from using any of its own $50 billion lifeline from the U.S. government to support overseas operations and must dip into money from non-U.S. operations.