General Motors has announced the sale of the rest of its preferred shares to Ally Financial for approximately $1 billion. The move not only strengthens Ally's standing in the auto financing market, but the sale is expected to result in a net gain of $300 million for GM, Reuters reports. Ally was previously the financing subsidiary of GM before the automaker sold 51 percent of its take to the federal government during the height of the auto bailout. The acquisition was a significant step forward for Ally, which is gearing up for its own initial public offering. Reuters reports that its purchase of the GM stock will position the federal government to sell of its share of the company, allowing Ally to stand on its own. "Today, we are taking another step forward in our strategy to strengthen and simplify the company's balance sheet," GM chief financial officer Chris Liddell said in a statement, according to Reuters. The deal was announced one day after Ally filed notice with U.S. regulators that it was set to purchase more than $1 billion in assets from GM.