The US activist investment fund Elliott Investment Management is trying to gather investors to acquire Toyota Industries, one of Japan's industrial giants. The price proposed by the fund is higher than the Toyota group's previous offer.
According to Demokrat.az, the matter is not directly about the sale of "Toyota Motor Corporation." The discussion revolves around the privatization plan of "Toyota Industries," which operates within the group.
According to information, Elliott is ready to offer shareholders an amount at or above the current market price. The fund believes that the real value of the company is at least 26,000 yen per share. Meanwhile, the Toyota group's offer announced in January was at the level of 18,800 yen.
Shares on the Tokyo Stock Exchange have risen to 20,270 yen in recent transactions, indicating that investors’ expectations for a higher price have formed.
According to a report by "Bloomberg," under pressure from minority shareholders, the Toyota group has increased its offer price and extended the deadline. However, Elliott is trying to block the deal by urging other investors not to sell their shares.
Currently, about 33 percent of investors have agreed to sell their shares. Considering the 25 percent stake already owned by the group, a certain percentage is still missing to reach the compulsory purchase threshold.
If the agreement goes through, Toyota Industries will be taken off the public market and become controlled by a private real estate company called Toyota Fudosan Co. The group's latest offer values the company's total worth at approximately 6.1 trillion yen. It is reported that the total deal value could reach 5.4 trillion yen.
Thus, the question remains relevant: Will the Japanese industrial giant step back under the pressure of the foreign fund, or will the local side prevail in the investor battle? The decision may become clear in the coming weeks.