Toyota Group is set to enhance its collaboration efforts as it transitions into a mobility company, with plans to privatize Toyota Industries Corporation. This move aligns with the group’s mission of “producing happiness for all” and aims to bolster the development of the mobility industry globally.
Toyota Fudosan Co., Ltd. announced its intention to initiate a tender offer for shares in Toyota Industries Corporation. This action is part of a series of transactions involving Toyota Motor Corporation, AISIN Corporation, DENSO CORPORATION, and Toyota Tsusho Corporation. These entities aim to privatize Toyota Industries through the establishment of a new holding company.
The plan involves significant investments from key stakeholders. Toyota Fudosan will invest approximately 180 billion yen in collaboration efforts within the group. Mr. Akio Toyoda has committed 1 billion yen, while Toyota Motor plans an investment of around 700 billion yen in non-voting preferred shares. These investments will be funded by reinvesting proceeds from selling shares held by these parties since Toyota Industries was listed.
As part of the transactions, Toyota Motor, AISIN, DENSO, and Toyota Tsusho will divest their holdings in Toyota Industries and acquire treasury shares through tender offers. This strategy aims to dissolve cross-shareholding arrangements among these companies, except for continued investment by Toyota Motor via preferred shares.
The transition focuses on integrating people, goods, information, and energy movements as part of becoming a mobility company. Within this framework, Toyota Industries will concentrate on “goods,” developing autonomous technologies for logistics equipment like forklifts and environmentally friendly powertrains while utilizing data related to goods movement.
Through privatization, deeper collaboration within the group is anticipated to expedite activities and lead advancements in mobility concerning “goods.” The group is also reviewing capital relationships from FY2023 onwards to sustain growth and competitiveness as a mobility entity.
Toyota Group remains committed to driving transformation towards creating a more prosperous future while adhering to its Guiding Principles and contributing towards many United Nations’ Sustainable Development Goals.
