Toyota Motor is to sell brokerage unit Toyota Financial Services Securities to Tokai Tokyo Financial Holdings as it seeks to focus on its mainstay vehicle business, sources told Kyodo News on Thursday.
Toyota Financial Services will sell its entire stake in the brokerage firm to Tokai Tokyo Financial Holdings, the anonymous were quoted as saying.
Toyota’ brokerage unit will then merge with Tokai Tokyo Securities, a brokerage firm under Tokai Tokyo Financial Holdings, probably next spring, they added.
Toyota and Tokai Tokyo Financial Holdings plan to discuss the details of the handover, such as sale prices, the sources said, adding Toyota Financial Services will hold around 5% stake of the new brokerage firm through the merger.
Tokai Tokyo Securities has a broader product range and more outlets than Toyota Financial Services Securities.
The Toyota brokerage firm was launched in July 2000 with an eye to enhancing the automaker’s financial business. But it sank into the red in fiscal 2008 ended 31 March this year, with a net loss of JPY1.2bn.