Honda Motor Co. said on Monday that it has reached a $7.2 billion settlement with shareholders that could result in a “substantial” payout to shareholders, in what could be the largest such payout in the U.S. to a non-public company.
Shares of Honda, the world’s largest maker of cars, have lost nearly 25% since the first quarter ended March 31.
The Japanese company said it has recorded net losses of $2.5 billion during the period, including a $1.2-billion impairment charge related to a Honda Powertrain division.
Honda said it would provide the same $7 billion payout to investors in the second quarter.
The deal with its shareholders was negotiated over a period of more than six months and covered an $8.5-billion deficit for the fiscal year that ended March 30.
Hondas shares fell nearly 4% on Monday as the company reported the first net loss of the year and reported a $4.7 billion loss in the third quarter.