 "Suzuki to raise $1.8 bn in bonds; cancel VW shares to fund India plans: Bloomberg")
As Japanese automaker Suzuki Motor Corp looks to expand in India, it plans to sell $1.8 billion (200 billion yen) worth of convertible bonds and cancel most of the stock it bought back from Volkswagen AG last year, Bloomberg reported on Monday.
According to the report, a statement filed on Monday with the Tokyo stock exchange said that the automaker will sell the bonds to fund the building of its $2.8 billion factory in Gujarat.
The report cited a separate statement by the company saying that it will also "cancel 70 million treasury shares, or 12.5% of outstanding stock, to boost returns for investors after ending its partnership with Volkswagen in September".
The Bloomberg report said that Suzuki won approval for setting up the car plant in India from its shareholders in December.
The Wall Street Journal had reported in 2014 that Suzuki had said "it would build the plant through a wholly-owned subsidiary instead of through its existing unit, Maruti Suzuki India Ltd". According to the report, this was done to allow the Indian company to conserve its cash reserves and "allow it to focus on expanding its sales and service network".
The Wall Street Journal had reported in 2014 that Suzuki had said "it would build the plant through a wholly-owned subsidiary instead of through its existing unit, Maruti Suzuki India Ltd". According to the report, this was done to allow the Indian company to conserve its cash reserves and "allow it to focus on expanding its sales and service network".