Ford today announced it will sell 20 percent of Mazda , raising $540 million in much-needed cash. As much as 6.9 percent will be sold back to Hiroshima-based Mazda, while the other 13.1 percent will be sold to unidentified investors. The move will effectively end Ford’s control of the company, which began in 1996 when the American automaker rescued Mazda from bankruptcy. It’s not known if Ford is seeking buyers for its remaining 13 percent stake.
Ford ’s entire stake in Mazda was said to be worth around $1.36 billion in October. A sale of 20 percent for $540 million would seem to put the overall valuation at $920 million — considerably less than expected.
Ford acquired a 25 percent stake in Mazda in 1979, ten years after the companies first partnered on an automatic transmission venture. Ford raised its stake in the carmaker to 33.4 percent in May of 1996, when the company effectively became a part of the Ford family.
Rumors about a sale of Mazda shares first broke in early October. Just over two weeks ago, Mazda president Hisakazu Imaki denied Ford was considering selling its controlling stake. As a part of its plan to buy back shares from Ford, Mazda announced Imaki will be replaced by Takashi Yamanouchi effective immediately.
Ford recently sold its Aston Martin , Jaguar , and Land Rover brands in similar efforts to raise capital. Rumors about a sale of Volvo continue to circulate.
Many of Ford’s products are tightly linked with Mazda’s — the companies share platforms for a number of vehicles, and development on a number of projects has been joint. Another Ford subsidiary possibly for sale, Volvo, also shares platforms with Mazda and Ford, making de-integration of next-generation vehicles projects a challenge.
