SCHEDULE 13D/A: Oaktree Funds Reduce Garrett Motion Stake, Brookfield Exits Reporting Group

Sentiment:

Beneficial Ownership Amendment 31 May 2025 1:52 AM

Oaktree-affiliated funds have reduced their beneficial ownership in Garrett Motion Inc. to 18.2% through recent share sales, while Brookfield entities have ceased to be part of the reporting group and no longer hold a greater than 5% stake.

Worse than expectedDirect Holders sold 188,000 shares at prices ranging from $11.09 to $11.14, with a volume-weighted average price of $11.0939 per share on May 28, 2025.Direct Holders sold a substantial 7,000,000 shares in a block trade for $10.30 per share on May 29, 2025, which is below the previous day's average sale price and could indicate a discount to facilitate the large transaction.The Brookfield Reporting Persons have ceased to act together with Oaktree and no longer beneficially own more than 5% of the securities, indicating a significant reduction in their stake or complete exit, which can be interpreted negatively by the market.

Summary

Oaktree-affiliated reporting persons now beneficially own 36,894,816 shares of Garrett Motion Inc. Common Stock, representing approximately 18.2% of the outstanding shares.
This percentage is calculated based on 202,619,947 shares outstanding as of April 25, 2025, as reported in Garrett Motion's Form 10-Q filed on May 1, 2025.
On May 28, 2025, Oaktree's Direct Holders sold 188,000 shares at a volume-weighted average price of $11.0939 per share, with prices ranging from $11.09 to $11.14.
On May 29, 2025, Direct Holders sold an additional 7,000,000 shares in a block trade at a price of $10.30 per share.
The Brookfield Reporting Persons (Brookfield Corporation, BAM Partners Trust, Brookfield Asset Management ULC) have been determined to no longer act together with the Oaktree Reporting Persons and have ceased to be beneficial owners of more than 5% of Garrett Motion's Common Stock.

Sentiment

Score: 3

Explanation: The sentiment is moderately negative due to significant share sales by major institutional investors and the dissolution of a large reporting group, which can signal reduced confidence or strategic divestment, potentially impacting the stock price negatively.

Negatives

Significant share sales by a major beneficial owner (Oaktree-affiliated funds) could indicate a lack of confidence or a strategic exit, potentially putting downward pressure on the stock price.
The exit of Brookfield from the reporting group and their reduction below 5% beneficial ownership suggests a significant divestment or change in investment strategy by a large institutional investor.

Future Outlook

Industry Context

This filing reflects a significant portfolio adjustment by major institutional investors, Oaktree and Brookfield, in Garrett Motion Inc., a company operating in the automotive technology sector. Such divestments by large holders can influence market perception and liquidity for companies within the industry, particularly if they are seen as a signal of changing investment theses or capital reallocation strategies by prominent funds.

Stakeholder Impact

Shareholders: Existing shareholders may experience downward pressure on the stock price due to increased supply from the large share sales and potential concerns over major investors reducing their stakes. The change in beneficial ownership structure could also alter perceptions of institutional support.
Company Management: The company's management might need to address market concerns arising from the significant share sales and the exit of a major investor group, potentially impacting investor relations and future capital-raising efforts.

Key Dates

Date	Description
2021-05-14	Original Schedule 13D filed.
2023-04-17	Amendment No. 1 to Schedule 13D filed.
2023-06-09	Amendment No. 2 to Schedule 13D filed.
2023-06-14	Amendment No. 3 to Schedule 13D filed.
2023-10-27	Amendment No. 4 to Schedule 13D filed.
2024-04-29	Amendment No. 5 to Schedule 13D filed.
2024-10-28	Amendment No. 6 to Schedule 13D filed.
2025-04-25	Date as of which 202,619,947 shares of Common Stock were outstanding, as reported in Form 10-Q.
2025-05-01	Date Garrett Motion Inc. filed its Form 10-Q with the SEC.
2025-05-28	Date of event requiring filing of this statement; Direct Holders sold 188,000 shares of Common Stock.
2025-05-29	Direct Holders sold 7,000,000 shares of Common Stock in a block trade.
2025-05-30	Date of filing of this Amendment No. 7.

Recommendation

hold

Keywords

Garrett Motion Inc., Common Stock, SEC Filing, Schedule 13D, Beneficial Ownership, Oaktree Capital, Brookfield Corporation, Share Sale, Institutional Investor, Equity Stake, Form 10-Q, Investment Management

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