TOKYO, March 23 – The Japanese automaker’s bid to acquire its supplier Toyota Industries concluded Monday, with outcomes from the massive transaction anticipated Tuesday afternoon at 3:30 p.m. local time (0630 GMT).
The car manufacturer increased its acquisition price to 20,600 yen per share this month, up from an earlier proposal of 18,800 yen, putting the transaction’s value at approximately $30 billion. This price adjustment resolved a prolonged dispute with activist investor Elliott Investment Management.
Monday at 3:30 p.m. Tokyo time marked the deadline for the acquisition proposal.
The automaker’s initial bid last year started at 16,300 yen per share before being increased on two occasions. The current offer represents a 26% increase over the original proposal.
Elliott Investment Management, which had previously turned down lower bids as inadequate, decided to sell its holdings after Toyota increased its offer to 20,600 yen. The firm described the final price as an “improved outcome” for minority shareholders.
Industry observers have monitored this transaction closely as it represents a significant evaluation of Japan’s corporate governance changes and examination of interconnected ownership structures among large corporate groups.
The acquisition requires acceptance from 42.01% of minority shareholders to proceed successfully. This calculation excludes Toyota Motor’s existing 24.66% ownership position.
