Toyota Motor Raises Toyota Industries Offer 15% to 18,800 Yen Valuing Deal at ¥4.7 Trillion
Toyota Motor raised its tender offer for Toyota Industries to 18,800 yen per share, valuing the deal at over ¥4.7 trillion (about $35 billion)—a 15% increase from last year’s 16,300 yen. The sweetened bid accelerates Toyota’s plan to take its founding group unit private after initial negotiations stalled in December.
1. Shares Reach All-Time High on Speculation of Further Sweetening
Shares of Toyota Industries surged 6.3% to 19,160 yen on Thursday, exceeding Toyota Motor’s revised tender offer of 18,800 yen per share and marking a fresh intra-day record. Trading volumes more than doubled the 30-day average as investors positioned for the possibility of an even higher bid, reflecting growing confidence that Toyota Motor may respond to pressure from Toyota Industries’ board and independent advisers.
2. Toyota Motor Raises Bid By Over 15% to ¥18,800 Per Share
On Wednesday evening, Toyota Motor announced it had increased its buyout proposal for Toyota Industries to ¥18,800 per share, valuing the offer at just over ¥4.7 trillion. This represents a premium of more than 15% over the initial ¥16,300 per share bid launched in June of last year. In addition to its own cash commitment, Toyota Motor has secured non-voting preferred shares totaling approximately ¥700 billion and will benefit from a ¥1 billion personal stake by Chairman Akio Toyoda.
3. Independent Adviser’s Valuation Puts Offer in Middle Range
An independent financial adviser had previously set a valuation range for Toyota Industries between ¥17,500 and ¥20,500 per share based on discounted cash-flow analysis and comparisons with global industrial peers. The current ¥18,800 offer sits slightly below the midpoint of that range, leading some analysts—such as Arun George of SmartKarma—to argue that the company may still be undervalued. Should Toyota Motor aim to secure unanimous shareholder approval, further concessions on price could be on the table.