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Toyota Plans Special Share Sale to Fund R&D
Toyota Motor Corp. expects to sell as many as 150 million new "Model AA" shares to help fund new vehicle technologies, including fuel cell systems, Bloomberg News reports.
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Toyota Motor Corp. expects to sell as many as 150 million new "Model AA" shares to help fund new vehicle technologies, including fuel cell systems, Bloomberg News reports.
The unlisted shares are named after the company's first car. They eventually will replace as much as 500 billion yen ($4.2 billion) in common stock and sell at a premium of 20% or more.
Toyota says the special stock will pay dividends but carry transfer restrictions for about five years. After that period, holders may sell their shares back to the company at the original issue price or convert them into common shares.
Analysts say the scheme aims to lock in long-term funding and help stabilize individual investors. Toyota plans to sell about 50 million Model AA shares this summer. Future blocks of the stock will be offered once per year.
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