Toyota Industries Corp Logo at the Nagakusa plant of the company in Aichi Prefecture, Japan.
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Shares of Toyota industries A decline of 13% Wednesday, symbolizes investor’s disappointment about the Toyota group 4.7 trillion yen (Billion 33 billion) Agreement Thumbs down to take the company privately.
This agreement comes when Japanese organizations are facing an increasing pressure from regulators and investors Unravel the long-establishmentSHead Cross-Sherholing Relationships. Japan’s Financial Services Agency A Reduction in cross-brush systems.
Toyota used cross-shedding in 2005 to protect the acquisition from acquisition in 2005, said Sotoru Ayama, head of corporate rates at the Fitch Rating in Japan.
The agreement includes a 26 billion tender offer to 16,300 yen shares for Toyota Industries Shares, according to Reuters, which was sharply lower than the 18,400 yen, which was closed on Tuesday before the agreement was announced.
Toyota group will Create a new Holding Company for Agreement. Toyota invests about 700 billion yen in non -preferred shares.
Supported by other financial loans Sumitoma Mitsui Banking Corporation, MUFG Bank and Mizuah Bank.
“Continuing, the cross will be unraveled between the Toyota group,” said Kee Okamura, Managing Director of Burman and Japanese equity portfolio manager.
Toyota shares were tank on Wednesday.
Global Equity Research Analyst Arun George said that the offer is some of the points that suggest “unattractive” In smart work.
George pointed out that the offer price is below the center of the assessment range given by the assigned independent financial advisers.
“The Special Committee has requested the offer three times to improve its JPY 16,300 final proposal, but it was denied,” George said.
In April, Toyota said he was potentially exploring the investment Billion buy 42 billion Toyota Industries. Toyota Motor, in 1937 emerged from the Toyota Industries A controller filing It is “exploring a variety of possibilities, including partial investment” in the Toyota Industries.
Okamura said the agreement was positive to the Toyota group. From the middle to the long term, if these shares are unveiled and the income is used for growth investments, it is better for capital income.
Toyota produces a number of products, including the Toyota Motor, including Industries, Forklifts, Engines, Electronic Units and Stamping Dies.
The agreement comes as the global automaker is facing tariff headwinds, after the US President Donald Trump announced 25% of the automobile imports in April. Analysts say the Toyota Motor was a bad blow to the US market.
