Ford Motor to sale 20% stake in Mazda Motor Corp.
Ford Motor Co. (F), which holds the biggest stake in Mazda Motor Corp. with a 33.4% stake, has decided to offload its stake by 20 per cent.
Under the agreement, the divestiture of US Automaker 's shares in Mazda will be carried both through the sale of shares to Mazda and the sale of shares to a group of Mazda's strategic business partners.
According to sources, the shares will be purchased by Sumitomo Corp., Itochu Corp. and five non-life insurance companies including Tokio Marine Holdings Inc., Denso Corp.
Other than this, Mazda also plans to buy back stock. The sales of the Mazda shares would help Ford to raise approximate capital worth $540 million.
Post acquisition, Ford will hold just over 13 percent stake in Mazda. However, Ford will remain Mazda's largest shareholder and will maintain a seat on Mazda's Board of Directors.
Alan Mulally, President and CEO of Ford said, “This agreement allows Ford to raise capital that will help fund our product-led transformation, and at the same time, allows Ford and Mazda to continue our successful strategic relationship in the best interest of both companies.”
Ford and Mazda will continue its ongoing joint ventures, as well as the sharing of platforms and powertrains, Mulally added.
Ford Motor Company, a global automotive industry leader based in Dearborn, Mich., manufactures or distributes automobiles across six continents. With about 224,000 employees and about 90 plants worldwide, the company's core and affiliated automotive brands include Ford, Lincoln, Mercury, Volvo and Mazda.
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