On 4 Aug., Daniel Akerson, CEO of GM, said that GM planned to buy-back 1% share of SGM with USD85 million. By raising cash to avoid going bankrupt, GM sold 1% share to SAIC at the price of USD84.5 million on 4 Dec, 2009, which helped GM ease the crisis during the hardest time. In addition, during 2009-2011, in the Chinese market, the great performance of SGM and other joint ventures of GM and SAIC also contributed to help GM out of crisis.

Now, it seems that GM will buy-back the 1% share with a premium of USD500 thousand, however, considering the appreciation of the RMB, when converted into RMB, it will be negative premium of 5.3% for SAIC. That is to say, for GM, it will be a cost effective deal in every aspect. 

Output of SGM, 2009- May 2011

Source: ResearchInChina