The Toyota group has sweetened its bid to privatize key unit Toyota Industries amid pressure from minority shareholders, but shares have already surpassed the revised offer, signaling ongoing investor discontent. The proposal was raised to ¥18,800 per share, a 15% increase, yet the stock climbed as much as 5.9% to ¥19,095 in Tokyo trading on Thursday. This suggests demands for a higher premium persist.
The Toyota group, facing vocal opposition from minority shareholders in Toyota Industries, has raised its bid to privatize the key unit to ¥18,800 per share ($118.56), marking a 15% increase from the initial offer. This adjustment came on the eve of the tender period, reversing earlier statements that the group would stand firm on the price. However, the move appears insufficient to satisfy investors, as shares in Toyota Industries surged as much as 5.9% to ¥19,095 shortly after trading opened in Tokyo on Thursday, January 15, 2026, outpacing the revised bid.
This reaction underscores persistent concerns that the offer undervalues the company. Hugh Sloane, from U.K.-based fund Sloane Robinson—which holds stakes in Toyota Industries—contends that the firm is worth at least ¥25,000 per share. Global activists, including Elliott Investment Management, have openly challenged the proposal, and the outcome could influence future buyouts in corporate Japan.
The escalation highlights growing shareholder activism in Japan, where such pressures are increasingly bending management decisions. While the sweetened bid aims to smooth the path to privatization, the rising stock price indicates that investors may demand an even higher premium, complicating the deal's prospects.