Fuji Heavy sells entire 1.18% stake in Suzuki
Using the Tokyo Stock Exchange's off-hours trading platform, the Subaru maker divested its 1.18% stake in Suzuki on Tuesday. Fuji Heavy will book 9 billion yen in profit from the sale in results for its April-September first half. No changes will be made to projections for the fiscal year ending in March.
The two companies began a cross-shareholding relationship in 2000, but reasons for the arrangement appear to have diminished. Fuji Heavy explained the sale as a way to "respect the underlying purpose of the corporate governance code applied last year." The guidelines urge companies in cross-shareholding arrangements to offer rational explanations to investors.
Meanwhile, Suzuki sold its 1.75% stake in Fuji Heavy for 52.7 billion yen on Tuesday. Fuji Heavy plans to retire all shares bought back at the end of this month.
In the past, Suzuki manufactured compact cars for the Subaru maker, and Fuji Heavy produced continuously variable transmissions for Suzuki.