What Happened To Holden's GM Daewoo Shares?

[BBDOS CV8]

Under ASIC laws you are required to fully account for holdings in foreign companies and you can't give them away for nil valiue as a responsible board. So either 1. Holden never really owned the stake, and was a 'paper' figurehead or 2. something was exchanged of similar value.

Siphoning of debt or assets is not legal in Australia, as it's seen as an effort to avoid tax liability and after the famous 'bottom-of-the-harbour' schemes of the 1970's Australia has extensive anti-siphoning laws.

So no, GM US could not simply say 'give us your GM-DAT shares' - not without incurring significant potential tax liabilities for Holden. There would have to be paper-based (t least) transfers of value. Maybe GM is paying for the Cruze tooling for Elizabeth as compensation; seeing as they had to invest in a set for themselves and so did Daewoo and Opel? Paying for four sets at a time is obviously cheaper than three.

Ain't a fan of Daewoo (that includes Holdenwoos and chevrowoos), never have never will be. I'd rather GM sell off Daewoo and keep Opel, sure Daewoo is in a better financial situation but Opel is far better for small-medium car development.

This is foolish - not only does it have xenophobic overtones but it's just plain wrong. Until ten-twelve years ago Opel produced as many or more duds as hits - and older Daewoos like the Cielo were heavily based on many of them. Daewoo's mostly made money since 2002 - Opel's mostly lost, and lost badly. Which is why everyone struggles to get product out of Daewoo while Opel's been closing plants and working short weeks. Daewoo only has trouble securing an ongoing credit line, because the Koreans want it back and the State-contolled bank wants more say in it to exercise government policy. Opel literally has trouble paying all it's bills - none of the governments in Europe really want it or care if it survives, except for the jobs and trade that would be lost.

Daewoo isn't worth as much as Opel in pure $$$ terms because Opel's plants and the market they sell into is much larger and it has a higher ability to pay - but on a $$$-return basis Daewoo kicks Opel all over the park on any day of the week.

[mang01]

Originally Posted by BBDOS CV8

Maybe GM is paying for the Cruze tooling for Elizabeth as compensation...

Maybe Holden paid for the Epicas, Barinas and Vivas in share returns since 2002*.. maybe directly to GM who invested much of the money in upgrading Daewoo's facilities just as "normal" capital expenditure. That way valuable assets circulated between the entities without anyone having to pay too much at any point of time and thus incur tax problems?
Then again maybe Korean law is not so picky about syphoning?

Who can say? It's all too complicated and makes my head hurt thinking about it..

*But of course the value of one Statesman exported to Korea = that of many Daewoo small cars so that can't be it...