Shares of Toyota Industries fell by more than 12 percent on Wednesday, after a take-private offer of $ 33 billion for the forklift operator of Oudota Motor, the expectations of investors were short.
The best -selling car maker in the world takes his supplier private through a complex 4.7 trillion yen ($ 33 billion) deal, with 16,300 yen per share for Toyota Industries. That prize was far below the closing price of 18,400 yen before the deal was announced.
Shares of Toyota Industries fell by 12.3 percent in the morning trade in Tokyo at 16,135 Yen.
The offer “undermines” minority shareholders in Toyota Industries, said analyst Arun George. It is probably “underestimating the important real estate possession,” he said in a comment published on the Smartkarma platform.
Media reports had indicated that the offer of around $ 42 billion would be, which would be a substantial premium for the actual offer.
By going private, Toyota Industries can take a business perspective in the longer term, the companies said on Tuesday. Japanese conglomerates are under increasing pressure to settle the effort together as part of a government that drives to better governance.
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, chairman of Toyota Motor, will invest 1 billion yen. Toyota Motor invests 700 billion yen in non-vulnerable preference shares.
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Published on June 4, 2025
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