Mitsubishi boosts stake in Mitsubishi Motors thru tender offer

March 21, 2018

Tokyo- Major Japanese trader Mitsubishi Corp. said Wednesday that it has made Mitsubishi Motors Corp. an equity-method affiliate in a tender offer through Tuesday.

The trading company's stake in the automaker rose to 20 percent from 9.24 percent in terms of voting rights.

By increasing its ownership of Mitsubishi Motors, Mitsubishi Corp. aims to fortify its automobile-related business, viewed as a centerpiece of its growth at a time when the automobile industry is undergoing rapid changes on the back of new technologies, such as artificial intelligence.

In the tender offer, which began on Feb. 21, Mitsubishi Corp. bought Mitsubishi Motors shares at 749 yen apiece, mainly from Mitsubishi Heavy Industries Ltd. and Bank of Tokyo-Mitsubishi UFJ.

Mitsubishi Motors is likely to remain listed on the Tokyo Stock Exchange's first section after the tender offer.

Following the tender offer, Mitsubishi Heavy's stake in Mitsubishi Motors will decline to 1.45 percent and that of Bank of Tokyo-Mitsubishi UFJ to 1.00 percent.

Mitsubishi Corp. is now set to lead the Mitsubishi group's efforts to assist Mitsubishi Motors, whose earnings are recovering from the slump caused by its fuel economy data fabrication scandal that came to light in April 2016. Jiji Press