The Toyota group reached a landmark deal with Elliott Investment Management to privatize Toyota Industries, paving the way for the biggest-ever acquisition of a Japanese company.
The carmaker and its affiliates are now willing to pay ?20,600 for each share of Toyota Industries they don¡¯t already own, and extended the tender period to March 16. The new offer values the company at ?6.7 trillion ($43 billion) and represents a 9.6% bump from its previous price, which was already raised before amid pressure from Elliott.
The sweetened offer ¡ª accepted by Elliott ¡ª effectively resolves Toyota¡¯s high-profile standoff with the activist investor, which argued that the prior offer severely undervalued Toyota Industries. It also shows how Japan¡¯s push to reform entrenched corporate structures and strengthen shareholder rights created ripe conditions for an open debate over price to take place.
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