Suzuki  will raise 6,423.3 million yen through a private placement of 3.66 million new shares with Volkswagen.

The third-party share allotment, scheduled between June 23 and July 5, is aimed at taking VW’s stake in Suzuki to 19.89 percent as set in the two companies’ business and capital tie-up agreement concluded last December.

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Volkswagen’s stake has dropped to 19.37 percent as some of the convertible bonds issued by Suzuki in the past were converted into common shares when they matured at the end of March.

The equity-linked financing will be used for capital spending to promote research and development programs, Suzuki said.

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