Mitsubishi Motors mulls capital shift and dividend payment

Article by Anita Panait, on May 24, 2013

Mitsubishi Motors Corp. is considering asking its shareholders to approve plans for a 10-for-1 reverse stock split, people having direct knowledge of the matter told Reuters. Mitsubishi is also mulling asking shareholders to approve a capital reorganization plan, a move that would allow the company to resume paying dividends.

The to-be-proposed plans would allow Mitsubishi to clear over JPY920 billion ($8.9 billion) in accumulated losses by reducing capital stock by an equivalent amount. This is considered a typical step for Japanese companies that have had been posting losses but have return to profitability and want to start paying dividends.

The sources told Reuters that while no final decision has been made on the matter, Mitsubishi Motors could announce the first of the steps as early as May 24, 2013, and propose it to shareholders at its annual meeting at the end of June.

The steps under consideration are aimed at closing a chapter that commenced in 2004 when the carmaker was saved by a bailout. Mitsubishi Motors is expecting to post a record operating profit for the fiscal year ending March 2014, helped partly by the depreciating yen.

While the Japanese carmaker continues to enjoy a strong sales position in Thailand and some other countries in Southeast Asia, it has been struggling to post further growth in Europe and the United States.  Mitsubishi Motors is planning to transform a plant in Illinois into a hub for exports.

Topics: mitsubishi

If you liked the article, share on:


Login or Create new account to add a comment!


It wasn’t too long ago when Maserati took the wraps off what appears to be the most gorgeous concept coupe ever made. The Alfieri coupe premiered at the 2014 Geneva...
by - October 23, 2016
Many have been excited with the impending arrival of the next-generation Jeep Wrangler and the new 2019 Jeep Grand Wagoneer, which is slated to be the brand’s new range-topping model....
by - October 21, 2016
Chevrolet has taken the wraps off its new Chevrolet Colorado ZH2 at the fall meeting of the Association of the United States Army (AUSA). Tagged as the most extreme fuel-cell-powered...
by - October 21, 2016
Honda has unveiled the fifth generation of its hot-selling SUV – the 2017 Honda CR-V. The latest iteration of the CR-V should help it maintain its benchmark status in the...
by - October 21, 2016
Many are already expecting BMW to launch an ultra luxurious SUV that will serve at its new flagship by late 2018. Larger than the X5 and X6, the new X7...
by - October 21, 2016