Ford has just announced that it will be offering 300 million shares of its common stock at a par value of $0.01 per share. The Dearborn automaker said that net proceeds from the offering are expected to be used for corporate purposes.
It said that it is looking to fund with cash instead of stock, a portion of the payments Ford is required to make to the Voluntary Employee Beneficiary Association (VEBA) retiree health care trust with the UAW.
“We continue to make strong progress on our transformation plan – gaining retail market share with great new products, improving quality, reducing costs and positioning Ford for a return to profitability,” said Ford President and CEO Alan Mulally. “Today’s equity offering is another example of the fast, decisive action we are taking as we build momentum on our plan, including further progress on improving our balance sheet.”
– By: Omar Rana