Latest Articles

HomeLatestToyota and Affiliates to Offload Some $1 Billion in Aisin Shares
Advertisements

Toyota and Affiliates to Offload Some $1 Billion in Aisin Shares

Toyota Motor Corporation and its affiliates have announced plans to divest approximately 33.9 million shares in Aisin, a move valued at 177.5 billion yen ($1.11 billion) based on current stock prices. The sale involves Toyota, Denso, and Toyota Industries, with Toyota alone reducing its stake in Aisin from 24.8% to 20% by selling around 13 million shares.

Advertisements

This decision mirrors a previous move in November, where Toyota, Aisin, and Toyota Industries opted to sell shares in Denso, signaling to investors a potential reduction in cross-shareholdings. Toyota aims to capitalize on these divestitures to fund the development and production of battery-powered vehicles, emphasizing a strategic review of its capital ties with group companies individually.

Advertisements

As part of the transaction, Denso and Toyota Industries will each sell just under 13 million shares through a secondary offering, while Toyota plans to sell approximately 7.9 million shares. Additionally, Toyota intends to offer an additional 5 million shares through an overallotment.

Advertisements

To counterbalance the market impact of these sales, Aisin plans to repurchase about 17 million shares and execute a 3-for-1 stock split later this year. This move reflects a broader trend among Japanese companies to unwind cross-shareholdings, traditionally seen as a means to solidify business partnerships but now reconsidered to optimize capital utilization.

Related topics:

Advertisements
Advertisements