Hitachi to raise $4.6 billion: report
16 November 2009
Global electronics company, Hitachi Ltd plans to raise as much as $4.6 billion by selling stock and convertible bonds to raise its battered capital and strengthen its finances after posting a record loss last year, according to media reports.
The Tokyo-based fourth-largest company in Japan by sales, making its first public share offering in 27 years, is planning to sell 100 billion yen ($1.1 billion) of convertible bonds and raise the rest in a sale of new stock, Reuters said yesterday.
The stock sale would increase Hitachi's outstanding shares by as much as 34.1 per cent, and the convertible bonds, maturing in five years, also may increase the number of outstanding stock by 7.8 per cent after a conversion. Total proceeds, excluding commissions, may be as much as 415.7 billion yen, Bloomberg said.
In its attempt to raise $4.6 billion, Hitachi now follows other Japanese companies like NEC and Toshiba to take the stock market route to raise funds after the global financial crisis have battered their sales and capital.
Hitachi, which had revenue of $99.544 billion in the fiscal year, ended 31 March 2009, reported a fourth straight annual loss of a record 787.3 billion yen and has forecasted a 230 billion yen net loss for the coming fiscal ending March 2010
The electronics company that makes everything from personal computers to Nuclear, thermal and hydroelectric power stations will be using the proceeds of the money to invest in growth businesses and repay $9.07 billion debt.
But the company said in a press release today that the media reports were not based on the company's decision or disclosure.