According to local media reports, Toyota Motor, Toyota Industries and Aisin plan to sell 10% of Denso’s shares worth an estimated US$4.6bn, based on the current share price, to free up capital to invest in BEV and related component factories.
Individually, Toyota Motor wants to sell a roughly 5% stake with the remaining 5% split between its two affiliates.
Denso was also understood to be planning a major share buyback to support its share price which has slipped 6% since the news emerged this week, although the company has not confirmed these plans.
Toyota Motor, which held a stake of just over 24% in Denso at the end of September, has also yet to confirm news of the share sale while Toyota Industries said a decision has yet to be made.
Denso, once NipponDenso and an early supplier to Toyota of items such as heaters, wiper motors, instrument clusters and many other parts, still makes a wide range of automotive components and systems, from HVAC systems to engine parts, electrical and electronic systems.
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The company is at the heart of Toyota Motor Group’s in-house supply chain with dozens of factories located around the world supporting the automaker’s global vehicle manufacturing operations.