Latest news with #takeprivate
CNA
2 hours ago
- Automotive
- CNA
Hong Kong shareholder Oasis to push Toyota Motor to raise bid for Toyota Industries
TOKYO :Hong Kong-based Oasis Management, a shareholder in both Toyota Motor and Toyota Industries, will push for the Japanese automaker to make a higher offer to take Toyota Industries private, its chief investment officer Seth Fisher said on Friday. Toyota Motor announced its plan for the $33 billion take-private offer on Wednesday, sending Toyota Industries' shares down 12 per cent the following day as market participants regarded the deal as undervaluing the subsidiary. The complex 4.7 trillion yen ($33 billion) transaction includes an offer price of 16,300 yen per share for Toyota Industries. While that represents a 23 per cent premium to the price before word of a deal broke in April, it is well below Toyota Industries' share price of 18,400 yen before the offer was formally announced. Shares in Toyota Industries closed up 0.86 per cent at 16,400 yen on Friday.
Asharq Al-Awsat
2 days ago
- Business
- Asharq Al-Awsat
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 the 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 word of the deal broke in April, it is well below the 18,400 yen price before the offer was formally announced. 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, Reuters reported. 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". The deal will see a number of Toyota Group companies unwind cross-shareholdings, something Japanese regulators and the Tokyo Stock Exchange have long urged for better governance. Toyota Industries has been one of Japan's most prominent examples of so-called "parent-child listings", where both a parent company and its subsidiary are listed. Governance experts say such cases are inherently unfair to minority shareholders and a drag on corporate value. Still, the transaction comes up short in terms of corporate governance, as it both undervalues Toyota Industries' substantial real estate holdings and strengthens the founding Toyoda family's control over the broader group, market participants said. "There's huge hidden asset value in the land and other holdings at Toyota Industries. And the price should have been much higher," Nicholas Benes, a governance expert and the CEO of the Board Training Institute of Japan, told a briefing on Wednesday. The deal was a "prime example" of a squeeze-out of minority shareholders at an unfair price by founders and management, he said. In a statement, Toyota Motor said the interests of Toyota Industries' minority shareholders were being considered. "Taking into account shareholder returns and the tax benefits for Toyota Industries, we have adopted a share buyback scheme" through a tender offer, it said. It said the deal was part of a broader realignment of capital structures within the Toyota Group as it moved toward becoming a mobility company. 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. 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.
CNA
2 days ago
- Business
- CNA
Toyota Industries sinks after parent's takeover bid misses expectations
TOKYO :Shares of Japanese forklift operator Toyota Industries fell more than 12 per cent on Wednesday, after a $33 billion take-private offer its parent, Toyota Motor, fell short of investor expectations. Toyota Motor will take Toyota Industries private in a complex 4.7 trillion yen ($33 billion) deal, offering 16,300 yen a share for Toyota Industries. The offer price was well below the closing price of 18,400 yen on Tuesday, before the deal was announced. Shares of Toyota Industries were down 12.3 per cent in morning trade in Tokyo at 16,135 yen. Media reports had indicated the tender offer would be around $42 billion, which would represent a substantial premium to the actual offer.
Reuters
2 days ago
- Business
- Reuters
Toyota Industries sinks after parent's takeover bid misses expectations
TOKYO, June 4 (Reuters) - Shares of Japanese forklift operator Toyota Industries (6201.T), opens new tab fell more than 12% on Wednesday, after a $33 billion take-private offer its parent, Toyota Motor (7203.T), opens new tab, fell short of investor expectations. Toyota Motor will take Toyota Industries private in a complex 4.7 trillion yen ($33 billion) deal, offering 16,300 yen a share for Toyota Industries. The offer price was well below the closing price of 18,400 yen on Tuesday, before the deal was announced. Shares of Toyota Industries were down 12.3% in morning trade in Tokyo at 16,135 yen. Media reports had indicated the tender offer would be around $42 billion, which would represent a substantial premium to the actual offer.
Reuters
3 days ago
- Business
- Reuters
CATL is hero Zeekr's minority shareholders need
HONG KONG, June 3 (Reuters Breakingviews) - Contemporary Amperex Technology ( opens new tab is best known as the world's largest battery maker. Now, the $333 billion Chinese company looks like an accidental advocate for minority shareholders. It may need to firm up its new role, however. Carmaker Geely Auto ( opens new tab wants to take its electric-car unit Zeekr (ZK.N), opens new tab private at a $6.5 billion valuation just a year after its stock debuted in New York. As the group and founder Li Shufu control nearly 80% of shares, that seemed like a done deal. Yet the target's early backers, including CATL, Intel Capital and Boyu Capital, a Chinese asset manager, have written to Zeekr's board objecting to the lowball bid, Reuters reported, citing three people familiar with the situation. They have a point. The 14% premium Geely is offering to the previous day's closing share price is miserly. Over the past twelve months, the average take-private premium in the U.S. was 39%, per Dealogic. Even if Geely's heavy existing ownership merits some discount, at 0.2 times forecast sales for 2026, the implied valuation is also far below the 0.9 average for a basket of five peers, per Visible Alpha. For now, Zeekr shares are trading in line with the cash and stock offer price, but the company's special committee set up to evaluate the offer might yet be tempted to listen to CATL, which is also a top supplier. Robin Zeng's group has been involved in multiple fundraising rounds for Zeekr, including the $500 million deal alongside Boyu and Intel in 2021 and a $750 million round in 2023, which valued the company at $13 billion. CATL has a five-year partnership with Zeekr, which was the first marque to use its 1000 km-range Qilin batteries. It also works with other brands controlled by Li, such as Volvo Cars ( opens new tab. There may be limits to CATL's sway as a supplier, but it has dozens of other reasons to embrace a new identity as an active shareholder too. CATL is a prolific investor in its partners, spending over $7 billion across more than 40 deals during the past decade, Dealogic data shows. Its holdings include Nio ( opens new tab, Hozon and IM Motor. These stakes are typically used to secure stronger ties with both clients and suppliers. In pushing back against Geely's lowball offer, CATL may be hoping to protect the value of the rest of its portfolio too. Follow @KatrinaHamlin, opens new tab on X
