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Mitsubishi Motors Corp. said Friday it has signed an agreement with Hyundai Motor Corp. to sell a 1.71 percent stake in the South Korean automaker to Hyundai Mobis, another company within the Hyundai conglomerate.

Mitsubishi, Hyundai Motor and Hyundai Mobis will forge a new cooperative agreement that will replace an existing arrangement. They will work on projects relating to joint development of automotive technology and products.

Mitsubishi said the sale, involving around 3.75 million shares, will generate 14 billion yen and result in capital gains worth some 9 billion yen.

Mitsubishi is 37.3 percent owned by DaimlerChrysler AG.

Earlier this year, Mitsubishi, Hyundai Motor and DaimlerChrysler entered a global alliance to develop a state-of-the-art four-cylinder gasoline engine.

Mitsubishi and Hyundai Motor see opportunities to further intensify cooperation in areas such as engines, transmissions and basic automotive design technology, Mitsubishi said.

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