By Kosaku Narioka
A Toyota group company doesn't intend to raise its tender offer price for Toyota Industries further, even amid opposition by major shareholder Elliott Investment Management, which has said the deal substantially undervalues the Japanese forklift maker.
Toyota Fudosan, the group's real-estate arm, said Monday that its offer price of 18,800 yen, equivalent to $121.47, reflected the intrinsic value of Toyota Industries and is the best possible price.
In January, Toyota Fudosan raised its bid from Y16,300 a share and started the tender offer, which continues through Feb. 12. The new offer valued Toyota Industries at about $35 billion.
Toyota Fudosan is privately held by Toyota group companies, with Toyota Motor Chairman Akio Toyoda also serving as its chairman.
Elliott said in a regulatory filing in January that it had increased its stake in Toyota Industries to 6.65% from 5.0%.
The U.S. activist investor hasn't ruled out a potential counter proposal for Toyota Industries, a person familiar with the matter said in late January. Elliott may build its stake further, the person said, adding that a counter tender offer is one of the options on the table.
The activist investor has said its analysis showed Toyota Industries' intrinsic net asset value to be more than Y26,000 a share as of Jan. 16 and that a standalone plan offers a clear path to a valuation of more than Y40,000 by 2028.
Elliott said key elements of the standalone plan included unwinding cross-shareholdings and ceasing overinvestment in the automotive segment. Elliott said Toyota Industries ran market-leading businesses and held valuable stakes in publicly traded companies.
Shares of Toyota Industries closed 0.3% higher at Y19,805 on Monday. They were below Y13,000 in mid-April, before the company said it received various proposals, including one to take the business private.
Toyota Industries, from which Toyota Motor was spun off in 1937, produces forklifts, cars, engines, other auto parts and textile machinery. It was founded by Sakichi Toyoda, Akio Toyoda's great-grandfather.
Write to Kosaku Narioka at kosaku.narioka@wsj.com
(END) Dow Jones Newswires
February 02, 2026 03:30 ET (08:30 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.