Mitsubishi Motors Corp had laid out plans to raise nearly USD2 billion through a public share offer by January 2014 to pay back shareholdders have provided in a 2004 bailout. With that fresh infusion, the company was able to recover albeit after a lengthy period of nearly a decade.
The capital fund raising would allow the Japanese automaker to pay out dividends for the first time in nearly fifteen years. The company would also retain close equity ties to the Mitsubishi group to find ways and means to comply with new restrictive environment preservation standards as well as technological innovations in the market.
Mitsubishi Motors would be using JPY200 billion or USD2 billion the fundraising offer would yield in order to buyback the preferred shares at a discounted price. In retiring them, according to sources who sought anonymity as these individuals had no authority to discuss the matter.
According to one of the sources, "It was difficult for them to find an alliance partner whle the preference shares were hanging over them, but this will let them be a normal company." The remaining preferred shares would be converted to ordinary stock.
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