Toyota Motor Raises Buyout Offer to ¥18,800 Amid Investor Scrutiny
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Benzinga
- Increased Buyout Offer: Toyota Motor has raised its buyout offer for Toyota Industries to ¥18,800 ($118.11), up from ¥16,300 announced in June, demonstrating the company's commitment to privatization plans.
- Investor Scrutiny: Elliott Investment Management publicly challenged the revised offer, claiming it still undervalues Toyota Industries and urging other minority shareholders to reject the current transaction structure, highlighting concerns over transparency and governance.
- Valuation Dispute: Elliott argued that Toyota Industries possesses strong, profitable units and robust financial assets, estimating intrinsic value above ¥25,000, indicating that the current buyout offer fails to reflect its true worth.
- Stock Performance: Toyota Motor's stock has gained over 26% in the past year and rose 2.73% to $234.09 on Thursday, reaching a new 52-week high, reflecting market confidence in its future growth.
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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.
