Updated GM ownership structure following the recent 60.6M shares contribution to the US hourly and salaried Pension Plans.
Post-IPO (fully diluted basis) 1,878,781,815 total
422,727,270 Motors Liq (22.50%)*
266,204,545 US hourly and salaried Pension Plans (14.17%)*
500,065,254 Treasury (26.62%)
140,084,746 Can / Ont (7.46%)
549,700,000 Public/Inst (29.26%)
*Incl VEBA and Motors Liq warrants
Check my math. Bondholders have approx 422,000,000 shares at 38.00 per share equals approx 16 billion. Outstanding bonds at 27 billion divided into 16 billion equals approx. 15.00 per 25 dollar par value bond or approx 60% of original value. Where am I going wrong?
Boys (and girls too),
I do not understand your math, and I believe you should be a professional - or you need really spend weeks to dig into all these things.
Note that these old GM bonds, former preferred stocks with (mostly) $25 par value, are trading now in huge quantities: if you check www.finra.com you'll see millions shares per day, including many 100,000 250,000 and even 1,000,000 shares in a single transactions.
It means that BIG GUYS (like hedge funds and other professionals) are involved.
I believe they know what they are doing. Today, at GM price around $38, our bonds cost is around $8.70, and they will float proportionally.
So, the price of a single $25-par bond is:
P = $8.70 * GM /$38 = 23% of one GM share
remember: bond price is 23% of GM share, approximately four time less than one GM share.
That's what you'll get in April or May - one share of GM for every 4 bonds (roughly). And - if the market is correct in its GM bullishness - one GM share will cost $40-$42 in April-May.
Good Luck to everybody.
If my math is half way correct I take 422 727,270 shares times approx 38.00 share price and get approx. 16 billion. Then I take approx 27 billion in outstanding bond value and divide that into the 16 billion and get approx $15.00 of value for each 25.00 par value bond or roughly 60% of original value. Where am I going wrong?
If my math is half way correct you take 427,727,270 times a share price of 38.00 and you get approx. 16 billion. Divide outstanding bonds of approx 27 billion into 16 billion and you get approx $15.00 of value of a $25.00 par value bond or approx 60%. Where am I going wrong?
Almost correct, but you need to divide by the total estimated claim amount of $41 billion. (not only bondholders' claims).
All class 3 claims are paid with GM securities, that include product liabilities and personal injuries claims prior to June 2009.
If my math is half way correct you take 422,727,270 shares times 38.00 and you get approx 16 billion. Divide 27 billion into that and you get approx 15.00 which is 60% of an original 25.00 par value bond. Where am I going wrong here?
Based on the data posted, the number of GM shares held by Motors Liquidation has not changed.
The way to calculate the current value of a $25 GM bond has not changed as well.
The data I posted is solely to illustrate the current ownership structure.
Daisy that is really good info.
Someone awhile back also posted a really good summary of all the known planned dilutions that are going to occur in the near future.
Combining that with your info here would be quite a comprehensive picture of who owns and will own what fraction of the socialist gong show known as New GM.
Web, from SEC filing regarding authorized shares:
>>Increase in Authorized Shares
On October 5, 2010, our Board of Directors recommended that we amend our Certificate of Incorporation to increase the number of shares of common stock that we are authorized to issue from 2,500,000,000 shares to 5,000,000,000 shares and to increase the number of preferred shares that we are authorized to issue from 1,000,000,000 shares to 2,000,000,000 shares. Our stockholders approved these amendments on November 1, 2010, and they were effected on November 1, 2010.<<
5 billion shares and 2 billion preferred! Double what was previously authorized and over 3X current outstanding shares. Think there will be some dilution?
60.6 million shares just given to UAW are currently considered as issued, but NOT outstanding. After transfer restrictions (I don't know when), outstanding shares should go from 1.5 billion to 1.5606 billion. Warrants are also not yet considered outstanding.