Toyota Motor Raises Buyout Offer for Toyota Industries to ¥18,800 per Share
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
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Source: seekingalpha
- Increased Buyout Offer: Toyota Motor raised its buyout offer for Toyota Industries from ¥16,300 to ¥18,800 per share, emphasizing the importance of control and simplifying the group’s structure, which is expected to enhance the likelihood of deal completion.
- Positive Market Reaction: Analysts noted that the market had anticipated the price increase, and the absence of a discount in the new offer may alleviate downward pressure on Toyota's stock price, reflecting confidence in the company's future prospects.
- Shareholder Response: Activist investor Elliott Investment Management stated that while the revised offer acknowledges the inadequacy of the original terms, it still significantly undervalues Toyota Industries, indicating ongoing scrutiny of the acquisition.
- Stock Price Movements: Shares of Toyota Motor rose 3.4% in premarket trading in the U.S., while Toyota Industries jumped 6.2% in Tokyo trading, reflecting a positive market response to the acquisition news, potentially boosting future stock performance for both companies.
Analyst Views on TM
About TM
Toyota Motor Corp is a Japan-based company mainly engaged in the automotive business, as well as financial services and other businesses. It operates through three business segments. The Automotive segment designs, manufactures, and sells automobiles, including sedans, minivans, compact cars, sport utility vehicles (SUVs), and trucks, as well as related parts and accessories. The Financial Services segment provides financing and vehicle leasing services to complement the sales of automobiles and other products manufactured by itself and its affiliates. The Other segment engages in information and communications services. It also oversees manufacturing and sales companies, conducts public relations and research activities, oversees financial companies, and develops various mobility products, primarily software.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
