A
What happened
Toyota raised its tender offer price to ¥18,800 per share, a 15% increase, as it seeks to take Toyota Industries private and gain full control. Toyota Industries’ board reportedly recommended investors tender their shares, with the process beginning this week and ending on February 12. Analysts suggested Toyota Industries’ value is above ¥20,000 per share, with some saying above ¥25,000. Elliott Investment Management said the revised offer still “very substantially” undervalues Toyota Industries and said it will not tender its shares and will encourage other shareholders not to support the tender.
★
Key insights
-
1
Elliott rejects the revised offer price: Elliott Investment Management said it will not tender its shares at ¥18,800 per share and will encourage other shareholders not to support the tender.
-
2
Analysts and Elliott cite higher valuations: Analysts suggested Toyota Industries’ value is above ¥20,000 per share, with some saying above ¥25,000, and Elliott said its valuation is more than ¥25,000 per share.
Takeaways
Toyota increased its bid for Toyota Industries to ¥18,800 per share, but some investors and analysts continued to argue the offer undervalues the company.