Toyota Industries, the parent company of Japan's Toyota Motor Corporation, decided to accept a takeover bid from Toyota Motor at a board meeting on the 3rd, as reported by the Nikkei.
Toyota plans to conduct a public stock purchase as early as December to delist Toyota Industries. Akio Toyoda, chairman of Toyota Motor Corporation, and Toyota Real Estate will also participate in the buyback.
However, according to the Nikkei, the share price of Toyota Industries was 18,400 yen (about 178,000 won) at the closing price that day, while Toyota plans to buy shares at 16,300 yen (about 157,000 won), raising concerns about whether shareholders will respond to the purchase request.
Toyota Industries was founded by Sakichi Toyoda, Akio Toyoda's great-grandfather and the founder of Toyota. The current Toyota Motor Corporation was created when the 'automobile division' of Toyota Industries was spun off.
Toyota Industries mainly produces forklifts and manufactures the body of the Toyota Sport Utility Vehicle (SUV) 'RAV4.' It is also developing all-solid-state batteries with Toyota to enhance electric vehicle (EV) performance.
For the fiscal year 2024 (April 2024 to March 2025), revenue was 4.0849 trillion yen (about 39.4 trillion won), and the market capitalization is approximately 6 trillion yen (about 58 trillion won).
The Nikkei analyzed, 'As the automotive industry faces a transformation with the transition to electric vehicles, Toyota is initiating a major group restructuring.'