Olympus to procure funds overseas

JIJI

Olympus Corp. plans to procure around ¥118.1 billion abroad by publicly issuing new shares and releasing some of the outstanding shares it currently holds.

The major precision equipment maker was involved in an investment loss cover-up scandal in 2011 that triggered a drastic fall in the company’s capital ratio.

The overseas fund procurement is designed to beef up the company’s capital base as well as its key medical device operation, company officials said Monday.

Olympus said it will issue 37 million new shares and release 4 million treasury shares with payment due between July 25 and 29.

Some ¥97.7 billion of the funds procured will be used to beef up its mainstay medical equipment business by building new plants and boosting research and development activities, the officials said.

The announced fund procurement is also aimed at raising capital to prepare for large damages payments over lawsuits filed by soured investors, sources said.