Nissan Motor Co. said Wednesday that it will sell 4 million shares of Kinugawa Rubber Industrial Co., a Nissan affiliate, to Toyo Tire & Rubber Co. to advance joint projects between the two rubber firms.
The 4 million stocks account for 6.5 percent of Kinugawa's total outstanding shares, and the price of the deal is likely to be between 400 million yen and 500 million yen, Nissan officials said.
Based on the deal, Kinugawa and Toyo Tire & Rubber will soon launch feasibility studies on vibration-isolating rubber and body seals for automobiles, firm officials said.
Nissan now holds 28.7 percent of the company's shares and will remain Kinugawa's top shareholder, followed by Toyo Tire & Rubber.