MMC’s biggest shareholder to sell

Mitsubishi Motors Corporation (MMC) seems likely lose its biggest shareholder.

Japanese equity investor Phoenix Capital has said it wants to redeem its investment, which dates from MMC shareholders’ unsuccessful 2004 rescue plan.

Phoenix Capital paid 74 billion yen (£379m) at a price of 100 yen (51p) per share in July last year to take nominal control of MMC – and its shares, despite the need for further cash injections into MMC this month, are still worth more than Phoenix paid when it invested in MMC mostly on behalf of foreign investors, with the stake partly underwritten by Mitsubishi Corporation.

Mitsubishi Heavy Industries would become the carmaker's largest shareholder following an exit by Phoenix, raising its stake to 15% from 7.9%, while Mitsubishi Corporation, which is Japan’s biggest trading company, would raise its stake to 14% from 2.8%, according to Auto Asia.