U.S. activist fund Elliott Investment Management has opposed the proposed ¥6.1 trillion ($39 billion) privatization of Toyota Industries, urging other minority shareholders to resist the bid. The fund argues the company could achieve greater value on its own. Toyota Group's revised offer stands at ¥18,800 per share, while Elliott values it at ¥26,000 per share intrinsically.
Elliott Investment Management, which holds a 5% stake in Toyota Industries, outlined its position in a letter published on Monday. The U.S. activist fund stated that the company's intrinsic net asset value amounts to ¥26,000 per share, far exceeding Toyota Group's revised offer of ¥18,800 per share. Even after the tender period began last week, the debate over the valuation persists.
This standoff highlights concerns about whether take-private deals led by founding families provide fair value to minority shareholders in Japan's largest business group. As Elliott intensifies its campaign for a better deal, the outcome could influence how aggressively investors challenge similar transactions in the future.
Toyota Group raised its bid, but Elliott's opposition leaves the buyout's fate uncertain. The situation may spark broader discussions on corporate valuations and shareholder rights.
