Propose Buyout of Subaru of America
DETROIT (AP) _ Fuji Heavy Industries Ltd. today proposed a $147-million buyout of outstanding common stock in Subaru of America Inc.
Fuji Heavy already owns 49.6 percent of Subaru of America’s outstanding shares and proposes to pay $6 per share for the remainder, the company said.
At $6 a share, Subaru of America’s 48.5 million outstanding shares of common stock are worth about $291 million. Subaru stock was valued at $5.875 per share, up 37.5 cents, early today on the national over-the-counter market.
″We believe that our proposed cash price is fair to Subaru of America’s shareholders, especially in light of the uncertain outlook for the U.S. automobile industry,″ Fuji Heavy Chairman Toshiro Tajima said.
″Only by controlling 100 percent of Subaru of America will we be in a position to effectively integrate the manufacturing and distribution process which, we believe, is critical to the growing demands of our U.S. dealer network and the interests of our customers,″ he said.
Fuji is one of Japan’s largest manufacturers of transportation equipment and sales in fiscal 1989 exceeded $5 billion.