UPDATE: Mitsubishi Motors Sets Price for New Shares

Mitsubishi Motors Corp. set a price 1,120 yen ($10.72) for new shares it will issue to buy preferred shares from Mitsubishi Group affiliates and resume dividend payments.

The issue of as many as 241 million shares, including an overallotment of 23 million shares, is expected to raise about 257 billion yen ($2.5 billion).

MMC will use most of the proceeds to buy back preferred shares it issued a decade ago when it was struggling to emerge from a scandal over product defects it hid for years from customers and government regulators. The company has since recovered. In April it will launch a new three-year plan that targets a 30% hike in sales to 1.4 million units by the end of fiscal 2016.