Toyota to launch 807 billion yen tender offer for own shares

Published Tue, Jul 23, 2024 · 04:19 PM

Toyota said it will offer 2,781 yen per share from Jul 24 to Aug 26. PHOTO: REUTERS

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TOYOTA Motor said on Tuesday (Jul 23) it would launch an 807 billion yen (S$7 billion) tender offer for its own shares.

The buyback comes amid a governance push by the Tokyo Stock Exchange that has prompted major companies to unwind cross-shareholdings.

The practice of companies holding shares in each other has long been seen as a way to reinforce business ties in Japan. But governance experts and foreign investors say it leads to lax governance by protecting management from shareholders.

Major banks Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group (SMFG) planned to divest Toyota shares worth a combined US$8.5 billion, Bloomberg News reported last month.

Toyota said in a statement it will offer 2,781 yen per share from Jul 24 to Aug 26.

Separately, SMFG, Tokio Marine Holdings and MS&AD Insurance Group said they would sell back Toyota shares to the automaker.

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Toyota has long been criticised for striving to offer customers an array of options by pursuing the development of multiple powertrains.

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Toyota is also unwinding cross-shareholdings within its network of manufacturing partners.

Mitsubishi, Sumitomo Mitsui banks to divest 1.32 trillion yen in Toyota shareholdings

Toyota, which has long prided itself on its reputation for safety and reliability, was the only automaker to undergo an on-site inspection.

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A filing earlier this month showed that Japanese financial groups including Tokio Marine, Sompo and two MS&AD units planned to sell Honda Motor shares worth 535 billion yen. REUTERS

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