TOKYO -- Investment fund Phoenix Capital's 165 million shares in Mitsubishi Motors Corp. (MMC) sold at 127.50 yen, JP Morgan said, equivalent to an 8.2 percent discount from Tuesday's closing price of 139 yen.
Most of the approximately 30 buy orders came from European institutional investors, JP Morgan said on Wednesday.
The U.S. investment bank said a day earlier that it had agreed to buy and resell before the start of Tokyo trading on Wednesday 165 million of the 740 million common shares in MMC held by funds organized by Phoenix Capital.
Although the shares were all sold and interest was high, market watchers said that did not indicate that investors viewed the stock as a good investment, but rather as a good bargain at a relatively steep discount.
"Typically, these (block trading) sales tend to carry a discount of about 7 percent," one official at a major securities firm said.
According to Reuters Estimates, none of the eight analysts covering MMC have a "buy" rating on the stock, mainly given concerns that the auto maker may face difficulty in returning its U.S., Japanese and Australian operations to the black.
JP Morgan and Phoenix Capital had agreed last summer to offer a combined 200 billion yen ($1.80 billion) in aid to MMC to help the debt-ridden Japanese auto maker rebuild itself.
At the time, Phoenix Capital had bought 740 million common shares in MMC for 100 yen each. Phoenix Capital would not say at what price it sold the 165 million shares to JP Morgan.
MMC shares lost 3.6 percent on Wednesday, underperforming a flat broader market.