NYK helps Mitsubishi Motors with share purchase

NYK helps Mitsubishi Motors with share purchase    Tokyo-based NYK Line will help Mitsubishi Motors Corp., a fellow member of the Mitsubishi industrial group, by injecting 2.5 billion yen ($23 million) into the Japanese carmaker’s share issue plan.
   NYK said Tuesday its board of directors has decided to underwrite preferred shares totaling Yen2.5 billion planned to be issued. The share issue is expected to be completed June 24.
   On May 21, money-losing Mitsubishi Motors said it planned to raise Yen450 billion ($4.1 billion), mainly from other companies and banks of the Mitsubishi group, to repay debts and invest in a medium-term plan.
   NYK said its share purchase will be an investment, and that it already owned less than 0.5 percent of the shares of Mitsubishi Motors.
   “They are one of our close customers,” said N. Nagai, spokesman for NYK in Tokyo. He said Mitsubishi Motors represents less than 10 percent of the volume shipped by the NYK group.
   “We have been the main carrier for Mitsubishi Motors Corp. for the last 30 years, we determined that by continuing and strengthening the business relationship, appropriate profits can be expected in the future,” NYK said in a statement.
   Mitsubishi Motors’ efforts suffered a blow in April when 37 percent owner DaimlerChrysler backed out of a bailout plan, Reuters reported.