Toyota Industries said Tuesday it has received a $33 billion offer to take the company private, in a move that could lead to the founding family strengthening its grip over Japan’s biggest business empire.
The deal will involve a tender offer for the shares of the supplier of textile looms, forklifts and parts for Toyota Motor’s cars for ¥16,300 a share, which is 11% below Toyota Industries’ closing price on Tuesday. The total amount required for the acquisition by the Toyota Group is around ¥4.7 trillion ($32.9 billion), a company spokesperson said.
A new holding company will be established to privatize Toyota Industries, the company said in a statement. Investment in the holding company will include ¥180 billion from Toyoda Fudosan, ¥700 billion from Toyota Motor in the form of nonvoting preferred shares and a personal investment of ¥1 billion from Toyota Motor Chairman Akio Toyoda.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.