Japanese automobile giant Mitsubishi Motors Corporation has formally become a direct shareholder of South East (Fujian) Motor Co Ltd (SEM) with a 20 per cent stake.

A deal was signed yesterday between Mitsubishi and SEM's two original shareholders, Fujian Motor Group (FJMG) and Taiwan-based China Motor Corporation (CMC).

The agreement says FJMG still controls 50 per cent of SEM with CMC's share being decreased from 50 per cent to 30 per cent. Mitsubishi's 20 per cent share will grow to 25 per cent next year. Meanwhile, as Mitsubishi also owns a small share of CMC, (currently 14 per cent), the Japanese firm will actually have a 29.5 per cent share of SEM by next year, said Mitsubishi's general manager Osamu Masuko.

(For more biz stories, please visit Industry Updates)