Japan Inc. has made great strides in corporate governance over the past decade that buoyed the stock market and ignited interest in dealmaking. It is now facing a landmark test of those efforts in a case involving the Toyota group.
Minority investors are upset about the group’s bid to take one of its listed affiliates private. They’re concerned about a slew of issues, mainly pricing and a lack of disclosure. The outcome of the ¥4.7 trillion ($31 billion) deal is being closely watched at home and abroad, especially in neighboring South Korea, which is starting to improve its own governance.
A letter signed by two dozen investors addressed "widespread concern” about the plan to buy out Toyota Industries Corp., also known as TICO, the original company from which Toyota Motor eventually emerged. The world’s biggest carmaker indicated last week there were no plans to raise the offer, which has been widely criticized for being too low, according to Bloomberg News.
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.