Mitsubishi Motors is making final arrangements to raise around JPY200bn via a public stock offering by the March end of this business year to buy back preferred shares and improve its finances, sources close to the matter have said.
The automaker plans to use the funds to be procured to purchase the roughly JPY380bn in preferred shares it issued in 2004 to 2005 to four Mitsubishi group companies as the relatively high dividends paid out on the shares have been burdensome, the sources told Kyodo News.
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In August, the company dipped into its capital and reserves to eliminate JPY924.6bn in cumulative losses that resulted from a sales slump following the revelation it had concealed vehicle defects in and after 2000, so it could resume paying dividend to shareholders.
