Toyota Industries investor Zennor Asset Management said a plan by Toyota Motor Chairman Akio Toyoda to take over the Japanese auto parts maker raises governance issues and may undermine minority shareholders’ interests.
David Mitchinson, founding partner at Zennor, said the reported ¥6 trillion ($41 billion) buyout plan would benefit the founding family and may undervalue the target’s stock and real estate holdings. Mitchinson suggested other options, including a potential takeover led by Toyota Motor.
Toyota Industries, the company founded by his great grandfather, formed a special committee and hired advisers to review the proposal, it was reported last month. Local media on Monday reported that Toyota Industries is set to accept the offer, and the bid will likely be announced in May or June, triggering a jump in its shares the next day.
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