FUJHY Subaru Corporation (PK)

Takata Corp. is selling shares it owns in auto makers to raise cash as the embattled Japanese company faces mounting costs stemming from recalls of defective air bags linked to at least 11 deaths and more than 100 injuries world-wide, said a person familiar with the matter.

Takata's ownership stakes are currently valued at roughly $90 million. It isn't clear when Takata plans to unload the shares or how much money it will ultimately raise.

The move comes after a Takata steering committee in May hired Lazard Ltd. bankers to seek a cash infusion and negotiate with auto makers on ballooning costs from recalls of tens of millions of air bags that risk rupturing and spraying shrapnel in vehicle cabins. Auto makers are recalling nearly 70 million air bags in the U.S. alone.

The expected cash gains from the share sales would help pad Takata's balance sheet in the short term as it grapples with financial losses from the mushrooming recalls. The company also faces possible damages from widespread lawsuits and could receive another hefty financial penalty depending on the outcome of a U.S. Justice Department criminal probe. Takata has said it is cooperating with government officials.

The Japanese automotive supplier as of the end of March 2015 owned more than 2.2 million shares of Honda Motor Co., its largest customer, according to the company's most recent annual report.

Takata also owned shares of Toyota Motor Corp., Nissan Motor Co., Suzuki Motor Corp., Mazda Motor Corp., Mitsubishi Motors Corp. and Subaru owner Fuji Heavy Industries Ltd., according to the report.

Write to Mike Spector at mike.spector@wsj.com and Megumi Fujikawa at megumi.fujikawa@wsj.com

(END) Dow Jones Newswires

June 14, 2016 13:45 ET (17:45 GMT)

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