Latest news with #Y700bn
Yahoo
5 days ago
- Business
- Yahoo
Toyota Group initiates privatisation of Toyota Industries
Toyota Group has launched a series of transactions to privatise Toyota Industries Corporation through a tender offer for its shares and related restructuring moves. A new holding company will be established to facilitate this process, the Japanese conglomerate said in a press statement. Toyota Fudosan, a company held by Toyota Group entities, will invest approximately Y180bn to foster collaboration within the group. Akio Toyoda, Toyota's chairman, will contribute Y1bn. Additionally, Toyota Motor will invest around Y700bn in non-voting preferred shares. These investments will be funded by reinvesting proceeds from the sale of Toyota Industries shares held by Toyota Fudosan, Akio Toyoda and Toyota Motor since the company's listing. As part of the transactions, Toyota Motor, AISIN, Denso and Toyota Tsusho will sell their Toyota Industries shares while acquiring their own shares held by Toyota Industries through tender offers for treasury stock. This move will dissolve cross-shareholding arrangements between Toyota Industries and these four companies, although Toyota Motor will maintain its investment in Toyota Industries via the aforementioned preferred shares. Toyota Group noted it is shifting its focus towards becoming a mobility company, encompassing the movement of people, goods, information and energy. Toyota Industries is specifically concentrating on goods, developing autonomous technologies for logistics equipment like forklifts, logistics management software and eco-friendly powertrains, alongside leveraging data related to goods movement. The privatisation, according to the company, is aimed at strengthening collaboration within the Toyota Group, enabling faster and more dynamic progress in these areas to position Toyota Industries as a key player in the mobility sector for goods. Since fiscal year 2023, Toyota Group companies have been reviewing their capital relationships to support sustained growth. In its press release, the group indicated ongoing discussions to determine the optimal structure for its transformation into a mobility company and to refine its capital relationships to enhance competitiveness. "Toyota Group initiates privatisation of Toyota Industries" was originally created and published by Motor Finance Online, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
22-04-2025
- Business
- Yahoo
MS&AD reportedly plans $5bn investment to boost North American growth
MS&AD Insurance Group Holdings plans to invest up to Y700bn to grow its North American operations, aiming to double operating profits in the region, Bloomberg News reported, citing the company's CEO. The Tokyo-based insurer, which leads in market share among global companies in Asia, is the third-ranked Japanese insurer in North America. 'So the challenge is how to become the top player there,' CEO Shinichiro Funabiki told Bloomberg in an interview. 'We need to strengthen our organisation so that we can double our profits in the near future,' said Funabiki, noting that specific business areas and investment targets will be decided later. Funabiki said the company intends to maintain its current investment approach. MS&AD projects net profits from its North American operations, encompassing Canada and Mexico, to hit Y166bn in the fiscal year ending March 2025, a 3.5-fold rise from the prior year. Amid a declining domestic market due to Japan's shrinking population, Japanese insurers are pursuing overseas growth through acquisitions. In March, MS&AD's subsidiary, Mitsui Sumitomo Insurance Co., revealed plans to purchase a 15% stake in US-based W.R. Berkley Corp. Funabiki affirmed the company's commitment to a bold investment approach. After factoring in the W.R. Berkley deal, MS&AD estimates Y600bn–Y700bn remains for investments, partly funded by proceeds from divesting cross-held shares in companies with prior business connections. Additionally, MS&AD is looking to merge its non-life insurance units, Mitsui Sumitomo Insurance and Aioi Nissay Dowa Insurance, with April 2027 the target date for completion. Funabiki declined to discuss potential cost savings from the merger but suggested it could strengthen group governance. Japan's Financial Services Agency issued business improvement orders in March to four non-life insurers, including Mitsui Sumitomo Insurance, for mishandling customer data, and in December 2023 for colluding on pricing in corporate contracts. 'The most lacking aspect was the ability to anticipate risks,' Funabiki said, noting that 'having two insurance companies of the same size with a dispersed organisational structure is not an optimal state'. The merged entity may adopt a merit-based personnel system, moving away from seniority, a change Mitsui Sumitomo Insurance initiated this fiscal year. "MS&AD reportedly plans $5bn investment to boost North American growth " was originally created and published by Life Insurance International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
