Toyota Industries Corp. has increased its buyout offer to 3,500 yen per share after facing resistance from minority shareholders, signaling renewed efforts to complete the acquisition of its subsidiary, Toyota Material Handling Japan. The revised bid represents a 12% premium over the previous offer.
- Buyout offer raised from 3,125 yen to 3,500 yen per share
- Total acquisition value now estimated at 210 billion yen
- Approximately 42% of TMHJ shares held by minority investors
- Previous offer secured 73% shareholder approval, below 90% delisting threshold
- New offer aims to meet delisting target by mid-2026
- TMHJ stock rose 8% on pre-market trading following announcement
Toyota Industries Corp. has escalated its voluntary buyout proposal for its wholly owned subsidiary, Toyota Material Handling Japan (TMHJ), to 3,500 yen per share, up from the initial 3,125 yen offer. The increase follows sustained pushback from a coalition of minority investors who questioned the valuation and insisted on a higher price reflecting TMHJ’s operational performance and strategic value. The revised offer, now under review by the Tokyo Stock Exchange, aims to secure the necessary 90% shareholder approval for delisting and full consolidation under Toyota Industries. The company’s decision to raise the bid comes after public disclosures revealed that approximately 42% of TMHJ’s outstanding shares were held by independent institutional and retail investors. At the previous offer level, the company had secured only 73% of votes in favor, falling short of the delisting threshold. With the new 3,500 yen price, Toyota Industries aims to attract additional support and finalize the transaction by mid-2026. Analysts note that the adjusted price implies a total acquisition value of approximately 210 billion yen ($1.4 billion USD) for TMHJ, based on the company’s outstanding share count of 60 million. This valuation reflects a 15% increase in enterprise value compared to the prior offer, aligning more closely with recent industry multiples for industrial logistics equipment firms in Japan. The move underscores Toyota Industries’ strategic intent to streamline operations and accelerate automation investments under a unified corporate structure. The revised offer is expected to impact trading activity in both Toyota Industries and TMHJ shares, with TMHJ’s stock gaining 8% in pre-market trading on the Tokyo exchange. Institutional investors and proxy advisory firms are now reassessing their positions, with some signaling readiness to support the transaction at the new price. The outcome will influence capital allocation patterns across Japan’s industrial equipment sector and reflect broader trends in corporate consolidation among vertically integrated manufacturers.