TOKYO – Toyota Motor Corporation revealed Monday it will increase its buyout offer for subsidiary Toyota Industries (TICO) to 20,600 yen per share, equivalent to approximately $132, while pushing the tender offer deadline to March 16.
The automotive giant’s enhanced bid represents a significant jump from its earlier proposal of 18,800 yen per share for the forklift manufacturing company. Monday had originally marked the closing date for the previous offer.
The increased share price comes with stipulations, requiring Toyota to secure loan guarantees from its banking partners. This development marks the newest chapter in an extended dispute between the world’s top automaker and activist investor Elliott Investment Management that has dragged on for several months.
According to Toyota’s regulatory filing, Elliott Investment Management – which had pressured the car manufacturer to increase its acquisition price – has now agreed to sell its Toyota Industries holdings provided specific terms are met.
The current exchange rate stands at $1 equals 156.59 yen.
