Toyota Motor’s bid to take Toyota Industries private has faced backlash from shareholders who believe the offer undervalues the company and unfairly benefits the Toyoda family. The $33bn buyout offer has drawn criticism from both international and domestic investors, including Zennor Asset Management and Oasis Management.
The proposed deal would see Toyota Motor privatise Toyota Industries by offering Y16,300 per share. However, shareholders argue that this price does not accurately reflect the true value of the supplier and could potentially increase the influence of the founding Toyoda family within the group.
During a recent shareholder meeting, concerns were raised about the low valuation of Toyota Industries and the potential domination of the company by the automaker. Executives faced a barrage of questions during the two-hour meeting, with shareholders expressing dissatisfaction with the offer price.
Despite the criticism, Toyota has defended the acquisition, stating that it would facilitate closer collaboration within the group as it transitions into a “mobility company.” The complex transaction involves creating a new holding entity with investments from unlisted Toyota Fudosan and Akio Toyoda, the founder’s grandson.
Oasis, a stakeholder in both companies, has publicly called for a higher offer price, while Zennor and others have highlighted the undervaluation of Toyota Industries’ significant real estate assets. With Toyota Group companies owning a substantial stake in Toyota Industries, the deal is expected to proceed, with shares closing at the offer price of Y16,300.
As the controversy surrounding the buyout continues, Akio Toyoda, chairman of Toyota Industries, may face further scrutiny at Toyota Motor’s upcoming annual general meeting. The outcome of the deal remains uncertain, with shareholders and investors closely monitoring the developments.
