— Mitsubishi Motors Corporation (MMC) today announced that it resolved during an extraordinary meeting of the board to issue common stock and No. 2 Class G preferred shares. The particulars of the issue are as follows:
< Common Stock >
| |
Amount |
105.606 billion yen |
| Purchasers |
Mitsubishi Heavy Industries, Ltd. |
37.524 billion yen |
| Mitsubishi Corporation, Ltd. |
51.346 billion yen |
| Bank of Tokyo-Mitsubishi |
16.736 billion yen |
| Payment |
March 10, 2005 |
< No. 2 Class G Preferred Shares >
| |
Amount |
168.393 billion yen |
| Purchasers |
Mitsubishi Heavy Industries, Ltd. |
12.475 billion yen |
| Mitsubishi Corporation, Ltd. |
18.654 billion yen |
| Bank of Tokyo-Mitsubishi |
137.264 billion yen |
| Payment |
March 10, 2005 |
Total financing from this new share issue will amount to 274 billion yen (including a debt-to-equity swap of 54 billion yen). This financing indicates strong support from these three Mitsubishi Group companies and follows in line with the capital reinforcement plan that was outlined in the new "Mitsubishi Motors Revitalization Plan" on January 28, 2005, that mapped out business plan targets to fiscal 2007. With this new capital increase, these three Mitsubishi group companies will increase their combined present holdings to approximately 34% of MMC's outstanding common shares with total issued and outstanding common stock expected to rise to approximately 4 billion shares.
The company will utilize the new financing of 220 billion yen, not including the 54 billion yen debt-to-equity swap by BTM, to lay the foundation of its "Mitsubishi Motors Revitalization Plan" by maximizing investments in research and development and capital equipment.
