Shareholders of Toyota Industries have voiced their disapproval of a $33bn buyout offer from Toyota Motor, suggesting the bid may undervalue the company and unfairly benefit the Toyoda family.
The proposal, criticised for undervaluing Toyota Industries, has drawn international and domestic disapproval, including from Zennor Asset Management and Oasis Management, reported Reuters.
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Toyota Motor plans to privatise Toyota Industries through a complex deal, offering Y16,300 per share.
This price has been contested by shareholders who believe it does not reflect the supplier’s true worth and could increase the founding Toyoda family’s influence over the group.
During the meeting, one shareholder stated: “I don’t think I am the only one who feels the price is too low.”
Another raised concerns about the potential “domination” of Toyota Industries by the automaker.
The session, which lasted nearly two hours, saw executives fielding an unprecedented number of questions.
Toyota Industries’ chairman Akio Toyoda may encounter similar scrutiny at Toyota Motor’s upcoming annual general meeting.
Toyota has defended the acquisition, stating it would foster deeper collaboration within the group as it transitions into a “mobility company.”
The transaction involves creating a new holding entity, with investments from unlisted Toyota Fudosan and Akio Toyoda, the founder’s grandson.
Toyota Motor will contribute Y700bn for non-voting preferred shares. Oasis, holding stakes in both companies, has publicly sought a higher offer price.
Zennor and others have pointed to the undervaluation of Toyota Industries’ substantial real estate assets, which are recorded at 1.5tn yen on the balance sheet.
With Toyota Group companies owning at least 39% of Toyota Industries, the deal is anticipated to proceed, with shares closing at the offer price of Y16,300.
