The Treasury plans to unload 95M shares for an estimated $25-$28 per share. A price in the middle of that range would value the former General Motors financing arm (GMAC) at $12.7B.
Ally (ALLY) itself isn't selling any stock, and the Treasury's sale tonight will cut its stake from 37% to between 14-17%.
A bullish Mark Palmer from BTIG says the Treasury exit will allow Ally to grow (upping loans to those with lower credit scores is one way) and boost profitability. “As Ally executes on its plans to reduce funding costs, the tangible-book-value multiple should expand as well," says Palmer.