Toyota is looking to raise money to build new hybrids and hydrogen fuel cell vehicles.
Bloomberg reports that the Japanese automaker is looking to create security for long-term investors and will sell as much as 500-billion yen ($4.2 billion) of new “Model AA” shares. The name pays homage to the company’s first passenger car and the unlisted stock will be sold for at least a 20-percent premium over common equity. The stock will also be restricted from trading for five years. The trade off for these restrictions will be a better dividend and the option to sell the shares back to Toyota at the issue price, or convert them into common stock.
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The automaker will initially sell 50-million shares once the plan is approved at the company’s annual shareholder meeting in June. According to a statement from Toyota, the divided will start at 0.5 percent and will increase by 0.5 percent annually to a maximum of 2.5 percent. Toyota wants to raise capital to help fund new safety systems, hybrids and fuel cell vehicles, like the Mirai.
[Source: Bloomberg]
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