Suzuki, while atÂ Frankfurt showing off itsÂ new Baleno hatchback and next-generation Vitara, is dealing with a financial problem of sorts.
In order to buy itself back from Volkswagen, the Japanese automaker will have to shell out 471.74 billion yen â€” or $3.9 billion USD. Suzuki plans to purchase as many of those shares back as possible during off-hours trading, before the bell rings Thursday morning.
â€œItâ€™s good that a resolution came. I feel refreshed. Itâ€™s like clearing a bone stuck in my throat,â€� said Osamu Suzuki to reporters gathered at a news conference in TokyoÂ a couple of weeks ago.Â â€œIâ€™m very satisfied with the resolution. Through it, Suzuki was able to attain its biggest objective.â€�
Volkswagen was ordered to sell back its 19.9-percent stake in Suzuki last month.
The $3.9 billion figure represents the number of shares held by Volkswagen â€”Â 122.77 million â€” multiplied by Wednesday’s closing share price.
According to Reuters, at least one Suzuki shareholder, U.S.-based hedge fund Third Point LLC, has urged Suzuki to cancel the shares after they are purchased and that the automaker should focus on improving value for existing shareholders.
Suzuki reportedly had nearly $8 billion USD in cash reserves at the end of March.