Activist investor Elliott Investment Management has taken a 5.01% stake for 268 billion yen ($1.71 billion) in Toyota Industries, a group firm that Toyota Motor is hoping to buy out, a regulatory filing showed on Wednesday.
Elliott said last month that the automaker’s proposed deal undervalued Toyota Industries, lacked transparency and fell short of proper governance practices. It said in the filing on Wednesday that the acquisition of the stake was for investment purposes as well as for possibly making important shareholder proposals.
Other global investors have also asked for more disclosure of the deal that would strengthen the influence of the founding Toyoda family within the group. The transaction is being closely watched as it coincides with a push by Japan’s regulators and the government for better corporate governance.
Toyota Industries, which is also a key supplier to the Japanese automaker, is to be taken private by Toyota Motor, group real estate company Toyota Fudosan and Toyota Chairman Akio Toyoda, the companies announced in June.
The bidders have offered 16,300 yen per Toyota Industries share, a premium of around 23% compared to its stock price before word of the deal broke in April. The stock closed at 17,690 yen on Wednesday.
As of end-September, Toyota Motor held about 25% of Toyota Industries while Toyota Fudosan owned 5.42%.
Source: Reuters.com