TOKYO: Japan's Mitsubishi Motors said Wednesday it would raise about $2.1 billion through a new share offering, as it tries to increase annual vehicle sales by 30 percent over three years.
The automaker said it would sell up to 210 billion yen or $2.1 billion of new shares and use the proceeds to buy back preferred shares from firms within the larger Mitsubishi Group, clearing the way to restart long-delayed dividend payments.
The preferred shares were issued about a decade ago as part of a bid to rescue the automaker as it faced a massive recall scandal.
Preferred shares rank ahead of common stock in any dividend payments.
So cancelling them would make it easier to restart payments to ordinary shareholders, which have been on hold since the late nineties.
The profitable firm said the move was aimed at "moving forward to the next stage of growth, and moving away from its previous stage as a company undergoing revitalisation".
Mitsubishi, which announced Tuesday a global tie-up accord with Renault and Nissan, detailed the moves as it unveiled its mid-term business plan.
It said it was aiming to raise annual vehicles sales to 1.43 million units in the business year ending March 2017, about 30 percent higher than current levels.
The firm said it would increase the proportion of "strategic products" pickup trucks, SUVs and crossover models in its overall sales mix.
Mitsubishi added it was aiming to slash costs as it targets an operating profit of 135 billion yen in the year through March 2017, up from 100 billion yen forecast in the current business year.
The company's Tokyo-listed shares were up 0.63 percent to 1,114 yen. (AFP)
