Mitsubishi Motors Corporation (MMC) has announced that it has finalised arrangements to sell 58 percent of its 4 million outstanding shares in Mitsubishi Fuso Truck and Bus Corporation (Mitsubishi Fuso) to DaimlerChrysler (DC) and several Mitsubishi group companies.
After the sale, DC now holds a 43 percent stake in Mitsubishi Fuso, MMC controls 42 percent, and Mitsubishi group companies (Mitsubishi Heavy Industries, Mitsubishi Corporation, The Bank of Tokyo-Mitsubishi, and others) have a 15 percent stake.
Based on an agreement reached with DC and the Mitsubishi group companies in September last year, MMC will receive 122.6 billion yen from the sale.
“We’ll now see an even stronger, more focused Mitsubishi Motors and Mitsubishi Fuso. Both companies will be able to concentrate solely on their respective products, customers, and market needs,” said MMC President and CEO Rolf Eckrodt.
Mitsubishi said in a statement that the new funds MMC receives will add traction to the company’s ongoing turnaround by helping it reduce interest-bearing debt and improve its competitiveness through investing in new products for the future.
Mitsubishi added that the spin-off allows MMC’s top management to concentrate solely on passenger car operations.
