Plan would privatize Toyota Industries
Toyota Motor to invest $4.5B in non-voting preferred shares
Toyota Group announced plans to privatize Toyota Industries as part of its strategy to become a global mobility company.
The move involves a tender offer for Toyota Industries shares led by Toyota Fudosan, with participation from Toyota Motor, AISIN, DENSO and Toyota Tsusho, according to a Toyota Group release today. A new holding company will be formed to oversee the transaction.
Toyota Fudosan will invest about 180 billion yen ($1.2 billion), while Akio Toyoda, chairman of the Toyota board of directors, will contribute about $6.5 million, according to the release. Toyota Motor will invest roughly $4.5 billion in non-voting preferred shares as part of the transaction. These investments will be funded through proceeds from the sale of Toyota Industries shares currently held by Toyota Fudosan, Toyoda, and Toyota Motor.
Toyota Industries will continue leading Toyota’s logistics innovation efforts, including autonomous equipment, green powertrains, and logistics software.
The restructuring supports Toyota’s focus on integrating mobility solutions for people, goods, information and energy, with Toyota Industries concentrating on the movement of goods, according to the release. Toyota Group is also reviewing its capital structure to support long-term competitiveness and growth in the evolving mobility landscape.
Editor’s note: All figures have been converted to U.S. dollars.
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