Toyota Industries’ shares nosedive on $33 billion buyout deal — steepest fall in 10 months

Actions of Toyota Industries dropped up to 13% Wednesday, after the Toyota group report 4.7 yen billions ($ 33 ​​billion) to ensure that private enterprise.

This includes a tender offer of $ 26 billion for Toyota Industries actions at 16,300 yen each, according to Reuters, significantly lower than 18,400 yen that he closed on Tuesday before the announcement of the agreement.

Toyota Group Will Create a new Holding company for the agreementThe group’s real estate arm, Toyota Fudosan, investing about 180 billion yen, while the president of Toyota Motor Akio Toyoda will invest 1 billion yen. Toyota Motor will invest around 700 billion yen in privileged shares without vote.

Another funding will be supported by loans Sumitomo Mitsui Banking Corporation, Mufg Bank and Mizuho Bank.

This agreement comes at a time when Japanese companies face the growing pressure of regulators and investors to come out for a long timesHolding bonds by HED. The Japan Financial Services Agency calls for a Reduction of cross -sharing provisions.

“The protection of Toyota industries against acquisition threats is not new; the Toyota group employed cross -actions in 2005 to protect itself from such threats,” CNBC Satoru Aoyama told CNBC, manager of fitch rating companies in Japan.

In April, Toyota said she explored investment in potential Affairs of $ 42 billion of Toyota Industries. Toyota Motor, which destroyed Toyota Industries in 1937, noted in a regulatory deposit Whether it was “to explore various possibilities, including partial investments” in Toyota Industries.

Certain factors suggest that the offer is “unattractive,” said Arun George, a global research analyst on actions, said On smartkarma.

The Special Committee has held several negotiations with the provider to show that it had made real efforts to conclude the best possible offer.

George stressed that even then, the price of the offer was lower than the middle of the evaluation range given by the independent financial advisers ordered.

“The Special Committee has asked three times that the offeringer improves its final offer of 16,300 JPY, but has been postponed,” said George.

Toyota Industries, which founded Toyota Motor, produces a range of products, including elevating trucks, motors, electronic components and matrices.

The agreement is positive for the Toyota group, said Kei Okamura, director of the Neuberger Berman and Japanese shares. In the long -term middle, if these shareholdings will be unrolled and if the product will be used for growing investments, it is in the event of capital returns.

“In the future, there will be more of these actions crossed among the Toyota group,” he said.