A Toyota Logo is seen at a Toyota dealership in Zaventem, Belgium, November 25, 2022. REUTERS
A Toyota logo is seen at the New York International Auto Show Press Preview, in Manhattan, New York City, U.S., March 27, 2024. REUTERS
TOKYO, June 4 (Reuters) – Shares of Toyota Industries (6201.T), fell more than 12% on Wednesday, after a $33 billion take-private offer for the forklift operator from parent Toyota Motor fell short of investor expectations.
The world’s top-selling automaker will take its supplier private through a complex 4.7 trillion yen ($33 billion) deal, offering 16,300 yen a share for Toyota Industries. That price was well below the closing price of 18,400 yen on Tuesday, before the deal was announced.
Shares of Toyota Industries were down 12.3% in morning trade in Tokyo at 16,135 yen.
The offer “undermines” minority shareholders in Toyota Industries, said analyst Arun George. It “likely undervalues the significant real-estate holdings,” he said in a comment published on the SmartKarma platform.
Media reports had indicated the tender offer would be around $42 billion, which would represent a substantial premium to the actual offer.
Going private will allow Toyota Industries to take a longer-term business perspective, the companies said on Tuesday. Japanese conglomerates are under increasing pressure to unwind stakes in each other as part of a government push for 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, Toyota Motor’s chairman, will invest 1 billion yen. Toyota Motor will invest 700 billion yen in non-voting preferred shares.
Reporting by David Dolan; Editing by Rashmi Aich and Stephen Coates