Toyota Motor Corp. has no plans to increase its proposed ¥4.7 trillion ($31 billion) buyout of Toyota Industries Corp., CEO Koji Sato said, despite widespread criticism that the tender offer undervalues the company. The buyout, led by Toyota Chairman Akio Toyoda, would consolidate control over Toyota Industries, which produces textile looms and forklifts, and reinforce the founding family’s influence over Japan’s largest business group.
The offer of ¥16,300 per share represents an 11% discount to Toyota Industries’ closing price on the day the deal was announced in June, a point that has drawn objections from investors who argue the bid does not reflect the company’s true value. More than two dozen shareholders signed a letter urging the boards of both companies to reconsider the valuation, according to the Asia Corporate Governance Association.
Sato emphasized the company’s intent to conduct the process transparently. “We hope to proceed in a transparent way so that all stakeholders are in agreement,” he told reporters in Tokyo on Wednesday. The holding company for the buyout will be primarily owned by Toyota Fudosan Co., an unlisted real estate firm chaired by Toyoda, who will personally invest ¥1 billion. Toyota Industries, the original business that launched the global automaker, also holds about 8% of Toyota Motor.
Separately, Sato addressed potential semiconductor supply disruptions following the Dutch government’s seizure of Nexperia BV, a move that has affected other global automakers including Honda Motor Co. Toyota has not been significantly impacted, he said, although he acknowledged the situation poses a risk. Nexperia, which is Chinese-owned, had warned Japanese automotive clients last week that it may no longer guarantee supply after the Dutch seizure and Beijing’s restrictions on exports.
Sato also declined to comment on U.S. President Donald Trump’s recent claim that Toyota plans to invest up to $10 billion in American auto plants. A company spokesperson reiterated that no such announcement has been made and that specific numbers have not been discussed with the White House.
