Tokyo: Toyota Motor said it explores the possibility of investing in a potential buyout of the Toyota Industries key parts – a buyout that could cost $ 42 billion.
“We are currently exploring various possibilities, including partial investments,” said the automaker in a file with the Tokyo Stock Exchange on Saturday following reports on possible buyout.
Bloomberg News reported on Friday that the president of Toyota, Akio Toyoda, and his founding family had proposed to acquire Toyota Industries in a possible agreement of 6 billion yen ($ 42 billion).
Toyota Industries, which has a market value of 4 Billions of Yen, said in a statement that it had received proposals on becoming private through a company for special purposes, but that it had received a repository proposal from the president of Toyota or the Toyota group.
Two sources familiar with the case said that Toyota Industries was planning to type Toyota and its group companies as well as large banks to finance a takeover. They also declared that the proposal did not come from Akio Toyoda or from the Toyota group.
The sources, which have refused to be identified as the question are not public, said that if Toyota Industries should become private, this would help improve corporate governance of the Toyota group, because transversal actions would be held.
Toyota and Toyota Industries declared in their statements that nothing had been decided.
Toyota held 24% of Toyota Industries from September from last year, while Toyota Industries held 9.07% of Toyota and 5.41% Denso, another Toyota supplier.
Toyota Industries had to face increasing shareholders' pressure to relax its cross -shareholders so that it can increase shareholder yields and make investments.
He sold some of his cross -shareholder, including actions in Aisin, another basic Toyota group supplier.
One of the sources said that becoming private would also give Toyota Industries the freedom to focus on growth strategies without worrying about shareholder yields.
Cross accessories, where companies hold actions with each other and are very common in Japan, have been the subject of a meticulous examination of regulators and shareholders, because the practice can ensure the management of having to serve the interests of the general shareholders.
Toyota Industries, formerly Toyoda Automatic Moof Works, was founded in 1926 by Sakichi Toyoda to manufacture automatic looms. An automotive division within the company was created and then took place as Toyota Motor. Toyota Industries is a large manufacturer of forklifts, produces the Sport Rav4 utility vehicle for Toyota Motor as well as for engines.
