Toyota Motor Corporation has officially announced that it has increased its offer price to acquire all outstanding shares in Toyota Industries Corporation, with the intention of taking its manufacturing subsidiary private. Toyota Industries is responsible for producing the popular Toyota RAV4 SUV, forklift trucks, and a variety of automotive components such as engines, air conditioning compressors, and batteries, as well as stamping dies.
The new offer from Japan’s largest automaker and its affiliates amounts to JPY 20,600 per share for all shares in Toyota Industries that they do not already own. This represents a significant 10% increase from their previous offer of JPY 18,800, which was below the market value. The revised offer is set to expire on 16 March.
This revised offer has been made in response to key financial investor Elliott Investment Management, who had been holding out for a higher price. With this new offer meeting their asking price, Elliott has indicated that they will accept the terms of the buy-out offer. This development brings an end to the long-standing standoff between shareholders and paves the way for Toyota Industries to be taken private. The new offer values the company at a staggering JPY 6.7 trillion (US$ 43 billion).
Elliott, who holds a 7.1% stake in the company, sees this increased offer as a positive outcome for minority shareholders and as a means to unwind cross-shareholdings within the Toyota Group. The agreement between the parties signals a step towards the privatization of Toyota Industries.
This article, “Toyota increases offer for all shares in Toyota Industries,” was originally featured on Just Auto, a GlobalData owned brand. Just Auto provides comprehensive coverage of the automotive industry, offering insights and analysis on the latest developments in the sector.
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