Mazda Looks to Raise $1 Billion to Research Hybrids

Mazda is looking to raise $1.1 billion through a share offering. The automakers plans on spending $670 million on Research and Development. The rest will go towards capital investment. The monies will come from issuing 315.2 million new shares and selling 96.8 million treasury shares.

Mazda is expected to spend $3.3 billion in R&D over the next three years. They will be focusing on improving the internal combustion engine (ICE) and developing hybrid technology. Mazda has said they would improve their ICE fuel efficiency by 30 percent by 2015.

The capital improvements will be used for the production facilities and R&D facilities to create those next generation products.

Ford's stake in the company will be diluted from 13.8% down to about 11 percent.

Source: Autonews