An announcement on June 3 confirmed that Toyota Industries would be taken private, accompanied by the creation of a new holding company. We spoke with four of the key figures involved, about returning to Toyota's roots to create its future.
On June 3, Toyota Fudosan announced that the Toyota Group would make a tender offer for the shares of Toyota Industries Corporation.
Once the transaction is completed, the shares of Toyota Industries will be taken private and delisted. This move will allow the company to pursue long-term growth, rather than immediate results, as a leader in the “mobility of goods.”
To facilitate the takeover bid, a new holding company will be established. Toyota Fudosan, whose shares are held by Toyota Group companies, will invest approximately 180 billion yen.
Regarding the investment, Toyota Fudosan Director Kenta Kon said, “Toyota Fudosan’s shareholders are comprised of 15 Toyota Group companies. More than Toyota Fudosan, this can be viewed as an investment by the Toyota Group.”
Additionally, Toyota Motor will invest around 700 billion yen in non-voting preferred shares. Chairman Akio Toyoda will also make a personal investment of 1 billion yen.
Toyota Industries Corporation was established in 1926 by Toyota Group founder Sakichi Toyoda. In 1933, Sakichi's eldest son, Kiichiro Toyoda, created an automobile division within the company, which went on to become Toyota Motor Corporation.
The company that constitutes Toyota’s roots is being privatized. What were the context and motivations behind the decision?
Immediately following the announcement, we spoke with Chairman Toyoda, President Koichi Ito of Toyota Industries Corporation, Director Kenta Kon of Toyota Fudosan, and Chief Officer Masahiro Yamamoto, who heads the Accounting Group at Toyota Motor.
“Is Akio Toyoda going to control Toyota Industries?”
“After reports of a 6 trillion-yen takeover bid, 16,300 per share is too low.”
“Will the Toyota Group become a holding company?”
How did the four leaders respond to such comments raised on social media by certain investors and members of the press following news of the takeover bid?
During his 14 years as president, Akio devoted himself to the cause of restoring “what makes us Toyota.” Through his 1 billion-yen investment, he hopes to ensure that Toyota’s essence, which lives on in the Group’s original company, is never forgotten.
In the course of its history, Toyota Industries ventured from producing looms into the uncharted territory of automobiles. Instead of sticking with the status quo, the company embarked on something new for the future. Going private is about returning to these roots in order to make another leap forward.
Be sure to watch the video to learn the motivations behind this decision.