Toyota to launch $5.16 billion tender offer for own shares
2024.07.23 05:19
TOKYO (Reuters) -Toyota Motor said on Tuesday it would launch an 807 billion yen ($5.16 billion) tender offer for its own shares.
The buyback comes amid a governance push by the Tokyo Stock Exchange that has prompted major companies to unwind cross-shareholdings.
The practice of companies holding shares in each other has long been seen as a way to reinforce business ties in Japan. But governance experts and foreign investors say it leads to lax governance by protecting management from shareholders.
Major banks Mitsubishi UFJ (NYSE:) Financial Group and Sumitomo Mitsui Financial Group (NYSE:) planned to divest Toyota (NYSE:) shares worth a combined $8.5 billion, Bloomberg News reported last month.
Toyota said in a statement it will offer 2,781 yen per share from July 24 to Aug. 26.
Separately, SMFG, Tokio Marine Holdings and MS&AD Insurance Group said they would sell back Toyota shares to the automaker.
A filing earlier this month showed that Japanese financial groups including Tokio Marine, Sompo and two MS&AD units planned to sell Honda (NYSE:) Motor shares worth 535 billion yen.
($1 = 156.4700 yen)
