Shares of Toyota Industries climbed 6.3% to a record 19,160 yen per share on Thursday, surpassing the latest tender offer price. The rally reflects investor optimism that Toyota Motor may further sweeten its bid following the revised offer announced late Wednesday. Trading volumes were elevated, indicating strong market conviction that a higher takeover premium remains possible.

Toyota Motor increased its proposal for Toyota Industries to 18,800 yen per share, up from the original 16,300 yen announced in June of last year. The revised offer values the group at just over $35 billion, or approximately 4.7 trillion yen, and advances plans to take the company private. Last year’s bid structure included 1 billion yen in direct investment from Chairman Akio Toyoda and a 700 billion yen injection via non-voting preferred shares.

Independent advisers had set a valuation range with a midpoint above the current offer, suggesting Toyota Industries may still be undervalued. Arun George, a global equity research analyst at SmartKarma, noted that while the 18,800 yen offer represents an all-time high, it remains below the midpoint of the adviser’s fairness range. He sees potential for additional upside if Toyota Motor seeks to secure broader shareholder support.

Bringing Toyota Industries fully under private ownership would streamline Toyota Motor’s access to key components such as forklifts, electronic modules and engines used across its global production network. Insiders suggest integration could unlock annual synergies of up to 50 billion yen through optimized procurement and tighter operational coordination, reinforcing Toyota Motor’s supply-chain resilience amid ongoing semiconductor and logistics headwinds.