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Toyota Lifts Toyota Industries Buyout Offer to ¥18,800 as Tender Opens

Elliott rejects the revised price, keeping the deal a test of Japan’s minority protections.

Overview

  • Toyota raised its tender offer by 15% to ¥18,800 per share in a plan to take Toyota Industries private under the Toyota group’s control.
  • The tender period runs from Jan. 15 to Feb. 12, and Toyota Industries’ board has recommended that shareholders tender their shares.
  • Toyota increased its cash contribution to as much as ¥800 billion, with an advisory committee backing the revised terms and Akio Toyoda excluded from renegotiations.
  • Elliott Investment Management, which holds about 5%, says the offer still undervalues the company, pegs intrinsic value above ¥25,000 per share, and says it will not tender under current terms.
  • Toyota Industries shares hit record highs and traded above the new offer price, as some analysts continued to argue the bid remains below fair value.