The logo of Toyota Industries Corporation at the Nagakusa plant of the company in Oiyu, Achi Province, Japan.
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Share of Toyota industries 13% slipped as more Wednesday, after Toyota Group report 4.7 trillion yen ($ 33 billion) deal To take the company private.
The deal comes at a time when Japanese firms are facing increasing pressure from both regulators and investors. Long consciousSHead cross-sharing relationshipJapan’s Financial Services Agency is calling for one Reduction in cross-sharing system,
In 2005, Toyota appointed cross-sharinging back to protect themselves against the dangers of acquisitions, the corporate rating chief Satoru Aoma told CNBC in Japan. “Moving forward, there will be more and more in cross shareholding between the Toyota group.”
The deal includes a tender proposal of $ 26 billion in 16,300 yen upes for Toyota Industries shares, according to Reuters, at least 18,400 yen closed on Tuesday before the deal announcement.
Toyota group will be Create a new holding company for the dealThe group’s real estate arm invested around 180 billion yen with Toyota Foodoson, while Toyota Motor Chairman Akio Toyoda will invest 1 billion yen. Toyota motor will invest about 700 billion yen in non-voting preferred shares.
Other financing will be supported by loan Sumitomo Mitsui Banking Corporation, MUFG Bank and Mizuho Bank.
There are some factors that suggest that this proposal is “unattractive”, a global equity research analyst Arun George said, said, ” On smartkarma,
George said that the proposal price commission was below the middle point of the assessment range given by independent financial advisors.
“The Special Committee requested three times that the proposer improved the final proposal of its JPY16,300, but was reprimanded,” George said.
Back in April, Toyota said it was searching for investment in one capacity $ 42 billion purchase Of Toyota Industries. Toyota Motor, which turned away from Toyota Industries in 1937 Regulator filing It was “discovery of various possibilities including partial investment” in Toyota Industries.
Omkura said that the deal is positive for the Toyota group. By mid-time, if these shareholding are going to be unwanted and if income is being used for development investment, it is well for capital returns.
Toyota Industries, which installed Toyota Motor, produces several products including forklifts, engines, electronic components and stamping dice.
