Mitsubishi Corp considers raising stake in Mitsubishi Motors via tender offer

February 20, 2018

Trading house Mitsubishi Corp said on Tuesday it was considering raising its stake in Mitsubishi Motors via a tender offer, a deal that the Nikkei newspaper reported could be worth about $1.1 billion.

Mitsubishi Corp said in a statement it was considering buying shares in the carmaker held by Mitsubishi Heavy Industries Ltd and Bank of Tokyo-Mitsubishi UFJ, a core unit of Mitsubishi UFJ Financial Group Inc, although no decision had been made.

The Nikkei reported earlier the firm planned to double its interest in Mitsubishi Motors to around 20 percent by spending about 120 billion yen ($1.1 billion) for additional shares through a tender offer.

Mitsubishi Corp held a 9.2 percent interest in Mitsubishi Motors as of last September.

Mitsubishi Motors and Mitsubishi UFJ Financial Group Inc declined to comment. A Mitsubishi Heavy spokeswoman said the firm was considering what to do with its stake in the carmaker but that nothing had been decided.

Earlier this month, Nikkei had reported that sister company Mitsubishi Heavy Industries had decided to sell most of its 10 percent stake in Mitsubishi Motors, with Mitsubishi Corp slated as the likely buyer.

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Reuters