Toyota Motor (TM), Aisin, Denso, Toyota Fudosan and Toyota Tsusho will participate in various transactions aimed at a tender offer for Toyota Industries shares to privatize Toyota Industries, Toyota said Tuesday.
A new holding company will be set up in connection with the move, with Toyota Fudosan to invest about 180 billion yen ($1.26 billion) for the purpose of collaboration and cooperation with Toyota Group.
Akio Toyoda will invest 1 billion yen, while Toyota Motor will invest 700 billion yen in nonvoting preferred shares, Toyota said.
Toyota Motor, Aisin, Denso, and Toyota Tsusho will sell their shares in Toyota Industries in the transactions and simultaneously acquire their shares held by Toyota Industries through the tender offers for their treasury shares. This will dissolve the cross-shareholding between Toyota Industries and the four companies, though Toyota Motor will continue to invest in Toyota Industries via preferred shares, the company said.
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