August 8, 2016 / 9:50 AM / 2 years ago

Suzuki Motor to sell back $515 million Fuji Heavy ordinary stake

The logo of Suzuki Motors is displayed at the 44th Tokyo Motor Show in Tokyo, Japan, November 2, 2015. REUTERS/Issei Kato/File Photo

TOKYO (Reuters) - Japan’s Suzuki Motor Corp (7270.T) is planning sell back its ordinary shares in Fuji Heavy Industries (7269.T) in a deal worth around 52.7 billion yen ($514.75 million), the compact car maker said on Monday.

Suzuki said it will sell 13.7 million in ordinary shares back to Fuji Heavy, which produces Subaru-branded vehicles, at a price of 3,852 yen per share in a transaction on Tuesday.

The sale of the stake, which Suzuki purchased in 2000, would result in an extraordinary profit of 46.8 billion yen to be booked during the second quarter, the mini vehicle maker said in a statement.

The deal comes after Fuji Heavy in May said it planned to repurchase up to 15 million of its ordinary shares - around 1.9 percent of total ordinary shares - through September to boost its share value.

After Suzuki unloads its shares, Toyota Motor Corp will become the only automaker with a major stake in Fuji Heavy.

Reporting by Naomi Tajitsu; Editing by Muralikumar Anantharaman and Biju Dwarakanath

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below