Toyota Industries Corp. will be taken private in a $33 billion deal led by Akio Toyoda and backed by Japan’s largest banks, according to Bloomberg. The tender offer represents an 11% discount to Toyota Industries’ recent closing price and has drawn criticism from shareholders for undervaluing the company. The privatization would tighten the founding family’s control over the Toyota Group while aligning with Japan’s push to unwind cross-shareholdings. The deal would resolve long-criticized ownership structures and support governance reforms following recent scandals. Mizuho Securities chief equity strategist Masatoshi Kikuchi said activist investors typically oppose discounted tender offers, as they deviate from the standard practice of paying a premium.
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00:00It's Benzinga bringing Wall Street to Main Street.
00:02Toyota Industries will be taken private in a $33 billion deal led by Akio Toyota
00:07and backed by Japan's largest banks, according to Bloomberg.
00:10Tender offer represents an 11% discount to Toyota Industries' recent closing price
00:14and has drawn criticism from shareholders for undervaluing the company.
00:18Privatization would tighten the founding family's control over the Toyota Group
00:21while allotting with Japan's push to unwind cross-shareholdings.
00:25The deal would resolve long-criticized ownership structures
00:27and support governance reforms following recent scandals.
00:31Mizuho, Securities Chief Equity Strategist Masatoshi Kikuchi,
00:35said activist investors typically oppose discounted tender offers
00:38as they deviate from the standard practice of paying a premium.
00:41For all things money, visit Benzinga.com slash GSTV.