OREANDA-NEWS. Mitsubishi Motors Corporation (“MMC”) has resolved at its board of directors meeting held on December 26, 2013 to decrease the amount of capital stock and capital reserve as follows.

MMC announced on November 6, 2013 the “Mitsubishi Motors Capital Restructuring Plan” (the “Plan”) for the purpose of moving forward to the next stage of growth, and moving away from its previous stage as a company undergoing revitalization, by achieving the cleanup of shares of preferred stock of MMC and the resumption of dividends to common shareholders by taking various measures such as conducting a capital increase by an offering of shares of common stock of MMC and acquiring the shares of preferred stock of MMC by using the proceeds from such issuance.

Based on the Plan, MMC has resolved that when MMC conducts an equity offering (the “Offering”) of shares of common stock of MMC and issues new shares by third party allotment (the “Capital Increase by Third-Party Allotment;” together with the Offering, the “Capital Increase”) for the purpose of securing a distributable amount required under the Companies Act upon the acquisition of shares of preferred stock of MMC, MMC will at the same time decrease the amount of capital stock and capital reserve in the same amount of the capital stock and capital reserve to be increased by the Capital Increase (the decrease in the amount of capital stock and capital reserve to be increased by the Offering is hereinafter referred to as the “Decrease in Amount of Capital, Etc. by Offering,” and the decrease in the amount of capital stock and capital reserve to be increased by the Capital Increase by Third-Party Allotment is hereinafter referred to as the “Decrease in Amount of Capital, Etc. by the Capital Increase by Third-Party Allotment;” collectively, the “Decrease in Amount of Capital, Etc.”).

The specific issue date, issue terms, total issue amount and other matters of the Capital Increase, and the details of the decrease in the amount of capital stock and capital reserve to be decreased by the Decrease in Amount of Capital, Etc. have not been determined, and MMC will announce those matters once they have been determined.

As the amount of capital stock and capital reserve to be respectively increased by the Capital Increase has not been determined, MMC has decided to set each of the total amount of capital stock and capital reserve to be respectively decreased by the Decrease in Amount of Capital, Etc. 380,800,000,000 yen, which is the total issue price of shares of preferred stock of MMC as of November 6, 2013, when the Plan was announced. The total amount of capital stock and capital reserve to be respectively decreased by the Decrease in Amount of Capital, Etc., however, is expected to actually be lower than such amount.

The amount necessary for the acquisition of all the shares of preferred stock of MMC will be lower than the amount of 380,800,000,000 yen described above because that amount includes the issue price of shares of preferred stock of MMC with respect to which all or part of the acquisition request rights in exchange for common stock of MMC are expected to be exercised based on the Plan on the condition that the payment for the Offering is completed and the Decrease in Amount of Capital, Etc. becomes effective, and because MMC will acquire shares of preferred stock at a price discounted from the issue price under this Plan.