Overview

• Toyota Group has launched a tender offer valuing Toyota Industries at about 4.7 trillion yen, proposing 16,300 yen per share for a total $26 billion equity component.
• Financing includes roughly 180 billion yen from Toyota Fudosan, 1 billion yen from Akio Toyoda and 700 billion yen in non-voting preferred shares by Toyota Motor, backed by loans from major Japanese banks.
• The transaction unwinds longstanding cross-shareholdings among Toyota Industries, Toyota Motor, Aisin, Denso and Toyota Tsusho, while preserving a non-voting stake for Toyota Motor.
• Shares of Toyota Industries dropped as much as 13% on the offer announcement, reflecting investor concerns that the 16,300 yen price falls below recent trading levels.
• Privatization is expected to give Toyota Industries greater flexibility to accelerate innovation in logistics equipment, autonomous technologies and mobility services.