— Mitsubishi Motors Corporation (MMC) today announced that its board of directors finalized the terms for issuing 295 billion yen worth
of preferred shares. The board of directors decided to issue preferred shares at a meeting on May 21 and the issuance was included as a part of the company's capital
enhancement announced on the same day. MMC will make maximum use of the funds procured through the capital enhancement to implement its business revitalization plan.
MMC today finalized the terms for three classes of preferred shares: Class A preferred shares (No.1 and No. 2)1 and Class G preferred shares (No. 1). The 130
billion yen worth of No.1 Class A preferred shares will be issued to Mitsubishi Heavy Industries (¥40bn), Mitsubishi Corporation (¥40bn), The Bank of Tokyo-Mitsubishi
(¥40bn), and Mitsubishi Trust & Banking Corporation (¥10bn).
The breakdown for the 35 billion yen of No. 2 Class A preferred shares is: China Motor Corporation 10 billion yen, Tokio Marine and Fire Insurance Company 10 billion yen,
Meiji Yasuda Life Insurance Company 7 billion yen, and five other Mitsubishi group companies totaling 8 billion yen.
MMC is also considering issuing No. 3 Class A preferred shares to Mitsubishi group companies that have not yet decided to participate in the preferred share issuance, the
limit for which would be around several billion yen.
As announced on May 21, the amount of Class G preferred shares to be issued is 130 billion yen: The Bank of Tokyo-Mitsubishi (¥90bn), and Mitsubishi Trust & Banking
Corporation (¥40bn). Funds procured from the Class G preferred shares will be used to pay off debts outstanding with both banks.
The total amount of Class A and Class G preferred shares is now 295 billion yen, which is 15 billion yen more than the figure announced in MMC's capital enhancement on May
21. Payment for the Class A preferred shares is due on June 24 while payment for the Class G preferred shares is due on June 28.
In addition to the preferred share issuance outlined above, MMC's capital enhancement is also expected to include issuing 70 billion yen2 in common stock to
Phoenix Capital and 100 billion yen in preferred shares (expected to be Class B) to JPMorgan, with payment due in mid to late July 20043.
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| 1 |
The company has decided to divide up the No. 1 Class A preferred share issue announced on May 21. Today, MMC decided to issue No. 2 Class A preferred shares and
finalized the terms for issuance. |
| 2 |
Maximum of 100 billion yen. |
| 3 |
Subscription amounts may change depending on market conditions. |
