Toyota Group has launched a series of transactions to privatise Toyota Industries Corporation through a tender offer for its shares and related restructuring moves.

A new holding company will be established to facilitate this process, the Japanese conglomerate said in a press statement.

Toyota Fudosan, a company held by Toyota Group entities, will invest approximately Y180bn to foster collaboration within the group.

Akio Toyoda, Toyota’s chairman, will contribute Y1bn.

Additionally, Toyota Motor will invest around Y700bn in non-voting preferred shares.

These investments will be funded by reinvesting proceeds from the sale of Toyota Industries shares held by Toyota Fudosan, Akio Toyoda and Toyota Motor since the company’s listing.

As part of the transactions, Toyota Motor, AISIN, Denso and Toyota Tsusho will sell their Toyota Industries shares while acquiring their own shares held by Toyota Industries through tender offers for treasury stock.

This move will dissolve cross-shareholding arrangements between Toyota Industries and these four companies, although Toyota Motor will maintain its investment in Toyota Industries via the aforementioned preferred shares.

Toyota Group noted it is shifting its focus towards becoming a mobility company, encompassing the movement of people, goods, information and energy.

Toyota Industries is specifically concentrating on goods, developing autonomous technologies for logistics equipment like forklifts, logistics management software and eco-friendly powertrains, alongside leveraging data related to goods movement.

The privatisation, according to the company, is aimed at strengthening collaboration within the Toyota Group, enabling faster and more dynamic progress in these areas to position Toyota Industries as a key player in the mobility sector for goods.

Since fiscal year 2023, Toyota Group companies have been reviewing their capital relationships to support sustained growth.

In its press release, the group indicated ongoing discussions to determine the optimal structure for its transformation into a mobility company and to refine its capital relationships to enhance competitiveness.

"Toyota Group initiates privatisation of Toyota Industries" was originally created and published by Motor Finance Online, a GlobalData owned brand.

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