Toyota Secures Elliott Support for $30 Billion Bid
Elliott Investment Management will accept Toyota's raised $30 billion bid for Toyota Industries. The agreement ends a long standoff over the share price.
Elliott Investment Management has agreed to tender its shares in Toyota Industries Corporation after Toyota Motor Corporation increased its take-private bid to 20,600 yen ($132) per share. The revised offer values the company at approximately $30 billion, ending a months-long dispute over the acquisition price.
The agreement marks the conclusion of a standoff in Japan between the automotive giant and activist investors. The original offer of 16,300 yen per share for Toyota Industries, also known as TICO, was widely criticized by minority shareholders for undervaluing the firm. A subsequent bid of 18,800 yen was also rejected by Elliott and other stakeholders before the final price was established.
In a statement released on Monday, the activist fund managed by Paul Singer confirmed its intention to accept the improved terms.
The price represents an improved outcome for minority shareholders.
The total valuation of the offer is approximately 4.7 trillion yen ($30 billion). According to a regulatory filing, Toyota Motor Corporation noted that Elliott's agreement to tender its shares is subject to certain conditions. The Japanese automaker also clarified that the final execution of the offer depends on obtaining loan guarantees from its banking partners. The tender offer was scheduled to conclude on Monday, coinciding with the announcement of the accepted price.
