Widespread criticism of the Toyota group’s ¥4.7 trillion ($33 billion) plan to privatize Toyota Industries at a large discount to the company’s current share price is fueling doubts over whether the takeover bid can garner enough support to succeed.
The tender offer by the holding company established to privatize Toyota Industries represents an 11.4% discount to Toyota Industries’ closing price before the plan was announced.
In order for the buyout to work, the ¥16,300-per-share tender offer will need to attract enough minority shareholders to cross a 42% threshold, excluding shares already held by Toyota Motor and treasury stock. That translates into more than 20% of issued stock in the maker of textile looms, forklifts and car components.
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.