Toyota has raised its tender offer to investors as it seeks to take subsidiary Toyota Industries private, but other shareholders in the unit are said to be unhappy at what they view as – still – an undervalued price.
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Toyota wants full control over the subsidiary, an increasingly important firm within the Toyota Group. Toyota owns around a quarter of Toyota Industries which is also a significant shareholder in Toyota Motor (holding around 9% of its shares).
Toyota Industries is a diverse manufacturing company. It manufactures textile looms and forklift trucks, but crucially, it also supplies car engines and a range of automotive components to Toyota Group.
Toyota has this week raised its offer price to ¥18,800 per share, a 15% increase on the previous offer level.
Toyota Industries’ board has reportedly recommended investors tender their shares for the renewed offer, a process that begins this week and ends on February 12.
Some analysts have suggested Toyota Industries is well above ¥20,000 per share.
Investors, including fund manager Elliott Investment Management, have openly challenged Toyota’s latest tender offer level.
Elliot Investment Management said in a statement:
“Although the revised tender offer price of ¥18,800 per share acknowledges the inadequacy of the original transaction terms, the new tender offer price continues to very substantially undervalue Toyota Industries.
“Toyota Industries owns high-quality, market-leading businesses and valuable financial assets that Elliott believes, based on its empirical work, together are worth more than ¥25,000 per share. This valuation has grown by more than ¥5,000 per share since June 2025, reflecting the approximately 40% increase in the value of the Company’s holdings in Toyota Motor and other Toyota Group companies, as well as the increase in the valuation of the Company’s key peers.
“Elliott opposes the revised tender offer price as not in the best interests of minority shareholders. Elliott does not intend to tender its shares under the current transaction terms and will be encouraging other shareholders not to support the tender.”
