Mitsubishi Aircraft Corp to inject $636 million in capital through new shares issue
03 May 2008
Tokyo: Mitsubishi Heavy Industries Ltd said Wednesday that Mitsubishi Aircraft Corp, a fully-owned subsidiary in charge of its newly launched passenger jet business, will issue new shares worth 67 billion yen ($636 million). The fresh capital injection will boost its capital and capital reserves to a total of 70 billion yen, from the current 3 billion yen.
Mitsubishi Aircraft Corp has been set up to develop the Mitsubishi Regional Jet, Japan's first domestically developed passenger jet.
The subsidiary said that it plans to carry out another round of capital infusion next year, in spring 2009, which will boost capital and capital reserves to 100 billion yen.
Mitsubishi Aircraft will issue 4,725 ordinary shares to Mitsubishi Heavy. Other buyers include trading house Mitsubishi Corp, Toyota Motor Corp, Sumitomo Corp and Mitsui & Co.
All of the preferred shares, which carry no voting rights, will be allotted to the Development Bank of Japan, a government-affiliated lender. Following the new share issuance, Mitsubishi Heavy's ownership of outstanding shares, including preferred shares, in the subsidiary will fall to 67.5 per cent, from the current 100 per cent.
Trading house Mitsubishi and Toyota will acquire a 10 per cent stake, while Sumitomo and Mitsui will obtain a 5 per cent stake.
