Latest news with #Toyoda
TimesLIVE
a day ago
- Automotive
- TimesLIVE
Toyota Industries sinks after parent takeover bid misses expectations
Investors gave a thumbs-down to Toyota Motor's $33bn (R587.91bn) take-private offer for Toyota Industries on Wednesday, highlighting concerns minority shareholders would be short-changed in a landmark restructuring for Japan Inc. Shares of Toyota Industries, a key Toyota Group company, fell 12% in Tokyo trade a day after the world's top-selling carmaker unveiled plans to take its subsidiary private. The complex, ¥4.7-trillion (R587.88bn) transaction includes an offer price of ¥16,300 (R2,020) a share for Toyota Industries. While that represents a 23% premium to the price before news of the deal broke in April, it is well below the ¥18,400 (R2,280) shares were trading at on Tuesday, before the offer was formally announced. The shares closed at ¥16,205 (R2,008) on Wednesday. 'To be clear, we welcome the attempt to clear up the parent-subsidiary governance issue. We don't like the price,' said David Mitchinson, founding partner and chief investment officer of Zennor Asset Management, which owns Toyota Industries shares. When asked if Zennor would tender its shares, he said: 'We will have to see how this develops, as there seems strong opposition from many shareholders.' While the deal will see some Toyota Group companies unwind cross-shareholdings — a plus for corporate governance — it also appears to strengthen the founding Toyoda family's control over the broader group.
Time of India
a day ago
- Business
- Time of India
Toyota Industries sinks after parent's takeover bid misses expectations
Investors gave a thumbs-down to Toyota Motor 's $33 billion take-private offer for Toyota Industries on Wednesday, highlighting concerns minority shareholders would be short-changed in a landmark restructuring for Japan Inc. Shares of Toyota Industries, a key Toyota Group company, fell 12% in Tokyo trade a day after the world's top-selling automaker unveiled plans to take its subsidiary private. The complex, 4.7 trillion yen ($33 billion) transaction includes an offer price of 16,300 yen a share for Toyota Industries. While that represents a 23% premium to the price before news of the deal broke in April, it is well below the 18,400 yen shares were trading at on Tuesday, before the offer was formally announced. The shares closed at 16,205 yen on Wednesday. "To be clear, we welcome the attempt to clear up the parent-subsidiary governance issue. We don't like the price," said David Mitchinson, founding partner and chief investment officer of Zennor Asset Management, which owns Toyota Industries shares. When asked if Zennor would tender its shares, he said: "We will have to see how this develops as there seems strong opposition from many shareholders". While the deal will see some Toyota Group companies unwind cross-shareholdings - a plus for corporate governance - it also appears to strengthen the founding Toyoda family's control over the broader group. Japanese regulators and the Tokyo Stock Exchange have pressured companies to dismantle longstanding stakes in each other to improve corporate governance. So-called "parent-child listings" where both a parent company and its subsidiary are listed, have long been seen as unfair to minority shareholders and a drag on governance. Going private will allow Toyota Industries to take a longer-term business perspective, the companies said on Tuesday. A new holding company will be set up for the deal. Group real estate company Toyota Fudosan will invest 180 billion yen, while Akio Toyoda , Toyota Motor's chairman, will invest 1 billion yen. Toyota Motor will invest 700 billion yen in non-voting preferred shares. Market participants said the price undervalued Toyota Industries' substantial real estate holdings. The deal was a "prime example" of a squeeze-out of minority shareholders at an unfair price by founders and management, said Nicholas Benes, a governance expert and the CEO of the Board Director Training Institute of Japan. "There's huge hidden asset value in the land and other holdings at Toyota Industries. And the price should have been much higher," Benes said at a briefing at the Foreign Correspondents Club of Japan on Wednesday. Toyota Motor did not immediately respond to an email request for comment outside of normal business hours. Media reports had indicated the tender offer would be around $42 billion, a substantial premium to the actual offer. Toyota Motor and group companies Aisin, Denso and Toyota Tsusho will all sell their shares in Toyota Industries and acquire their own shares now held by it. Toyota owned about 24% of Toyota Industries as of September last year, while Toyota Industries held around 9% of the automaker and more than 5% of Denso. Toyota Industries, formerly Toyoda Automatic Loom Works, was founded in 1926 to make automatic looms. An automotive division within the company was set up and later spun off as Toyota Motor.
a day ago
- Business
INTERVIEW: Kobayashi Pharma Vows Never to Repeat Health Scare
News from Japan Economy Jun 4, 2025 18:01 (JST) Osaka, June 4 (Jiji Press)--The head of Kobayashi Pharmaceutical Co. has promised that it will never cause health damage again, following a high-profile scare last year caused by its supplements containing "beni koji," or red fermented rice. "I will continue to urge our workers to never repeat" such health hazards, President and CEO Norikazu Toyoda said in a recent interview held after taking office in March. Toyoda plans to renew the company's personnel systems to prioritize human resource development, as part of efforts to strengthen product quality controls. In March 2024, the drugmaker, based in the western Japan city of Osaka, announced that it had received a series of reports about such symptoms as kidney disease from users of its supplements. "We have caused problems for our customers and business partners," Toyoda reiterated, suggesting that his company will continue focusing on providing compensation to victims and taking thorough preventive measures. [Copyright The Jiji Press, Ltd.] Jiji Press
Asahi Shimbun
2 days ago
- Automotive
- Asahi Shimbun
Toyota to take key supplier private in $33 billion deal
Toyota Motor will take forklift-maker Toyota Industries private in a $33-billion deal, the companies said on Tuesday, a landmark unwinding of cross-shareholding that is likely to strengthen the influence of the group's founding Toyoda family. Going private will allow Toyota Industries to take a longer-term business perspective, the companies said. Japanese conglomerates are under increasing pressure to unwind stakes in each other as part of a government push for better governance. "It streamlines the cross-shareholdings a bit within the group," said Vincent Sun, a senior analyst at Morningstar. "We think it makes sense for Toyota Motor to have a stake in Toyota Industries to leverage on any potential autonomous (logistics) technology in the future." The total acquisition cost for the Toyota Group will be around 4.7 trillion yen ($33 billion), a spokesperson said. That includes a $26 billion tender offer for shares of Toyota Industries at 16,300 yen apiece, well below the closing price of 18,400 yen on Tuesday before the deal was announced. A new holding company will be set up for the deal, the companies said. Group real estate company Toyota Fudosan will invest 180 billion yen, while Akio Toyoda, Toyota Motor's chairman, will invest 1 billion yen. Toyota Motor will invest 700 billion yen in non-voting preferred shares. Toyota Motor and group companies Aisin, Denso and Toyota Tsusho will all sell their shares in Toyota Industries and acquire their own shares now held by it. "Toyota Group is focusing on the movement of people, goods, information, and energy as it progresses towards transforming into a mobility company," the companies said, adding that Toyota Industries would focus on the transport of goods. While the deal was widely expected, the price may come as something of a shock. Media reports had indicated the tender offer would be around $42 billion, a 62% premium to the actual offer. Toyota had said in April it was considering participating in a potential buyout of Toyota Industries. Toyota owned about 24% of Toyota Industries as of September last year, while Toyota Industries held around 9% of the world's biggest automaker and more than 5% of Denso. Toyota Industries, formerly Toyoda Automatic Loom Works, was founded in 1926 by Sakichi Toyoda to make automatic looms. An automotive division within the company was set up and later spun off as Toyota Motor.
Yahoo
2 days ago
- Automotive
- Yahoo
Toyota to take key supplier private in $33 billion deal
TOKYO (Reuters) - Toyota Motor will take forklift-maker Toyota Industries private in a $33 billion deal, the companies said on Tuesday, a landmark unwinding of cross-shareholding that is likely to strengthen the influence of the group's founding Toyoda family. Going private will allow Toyota Industries to take a longer-term business perspective, the companies said. Japanese conglomerates are under increasing pressure to unwind stakes in each other as part of a government push for better governance. "It streamlines the cross-shareholdings a bit within the group," said Vincent Sun, a senior analyst at Morningstar. "We think it makes sense for Toyota Motor to have a stake in Toyota Industries to leverage on any potential autonomous (logistics) technology in the future." The total acquisition cost for the Toyota Group will be around 4.7 trillion yen ($33 billion), a spokesperson said. That includes a $26 billion tender offer for shares of Toyota Industries at 16,300 yen apiece, well below the closing price of 18,400 yen on Tuesday before the deal was announced. A new holding company will be set up for the deal, the companies said. Group real estate company Toyota Fudosan will invest 180 billion yen, while Akio Toyoda, Toyota Motor's chairman, will invest 1 billion yen. Toyota Motor will invest 700 billion yen in non-voting preferred shares. Toyota Motor and group companies Aisin, Denso and Toyota Tsusho will all sell their shares in Toyota Industries and acquire their own shares now held by it. "Toyota Group is focusing on the movement of people, goods, information, and energy as it progresses towards transforming into a mobility company," the companies said, adding that Toyota Industries would focus on the transport of goods. While the deal was widely expected, the price may come as something of a shock. Media reports had indicated the tender offer would be around $42 billion, a 62% premium to the actual offer. Toyota had said in April it was considering participating in a potential buyout of Toyota Industries. Toyota owned about 24% of Toyota Industries as of September last year, while Toyota Industries held around 9% of the world's biggest automaker and more than 5% of Denso. Toyota Industries, formerly Toyoda Automatic Loom Works, was founded in 1926 by Sakichi Toyoda to make automatic looms. An automotive division within the company was set up and later spun off as Toyota Motor. ($1 = 142.6500 yen) ($1 = 142.8500 yen) Sign in to access your portfolio
