Today, Toyota Motor announced its plans to take forklift manufacturer Toyota Industries private in a deal valued at $33 billion.
In a joint statement, the companies described the deal as “a landmark unwinding of cross-shareholding” that is expected to enhance the influence of the founding Toyoda family.
According to a company spokesperson, the total acquisition cost for the Toyota Group will be about 4.7 trillion yen (US$33 billion), which includes a US$26 billion tender offer for shares of Toyota Industries at 16,300 yen per share.
A new holding company will be formed for the deal, with Toyota Fudosan investing 180 billion yen, while Akio Toyoda, Chairman of Toyota Motor, will invest one billion yen. Toyota Motor plans to invest 700 billion yen in non-voting preferred shares.
The companies stated that going private will enable Toyota Industries to adopt a longer-term business perspective, as Japanese conglomerates encounter growing pressure to divest their stakes in one another due to a government initiative aimed at improving governance.
By CEO NA Editorial Staff
