Toyota Industries shares jump after Toyota Motor raises buyout offer to over $35 billion
Toyota Industries Corp., which is based at the company’s Nagakusa plant in Obu, Aichi Prefecture, Japan. logo.
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Shares of forklift maker Toyota Industries jumped Thursday, a day after Toyota Motor raised its tender offer price by more than 15% to more than $35 billion to acquire the automaker.
Shares rose 5.8% after Toyota Motor announced late Wednesday increased its purchase offer A price of 18,800 yen ($118.11) per share was offered for the group company; This figure is up from 16,300 yen announced in June last year, advancing plans to privatize the company.
Last year, Toyota Motor tried to buy Japan’s largest conglomerate for 4.7 trillion yen. The deal included 1 billion yen from chairman Akio Toyoda and an investment of nearly 700 billion yen in non-voting preferred shares by Toyota Motor.
In December, Toyota Industries said it was seeking a higher price, expressing concerns that the deal had limited chances of success.
“While the revised quote represents a new all-time high, it is arguably underweight,” said Arun George, global equity research analyst at SmartKarma.
He said it came in below the middle of the valuation range determined by the independent consultant, indicating the company may still be undervalued.
Toyota Industries, which founded Toyota Motor, manufactures a variety of products including forklifts, engines, electronic components and stamping dies.
