Toyota Group issued a series of transactions through tender offer and related restructuring moves to privatize Toyota Industries.

Japanese conglomerate said in a press statement that it would establish a new holding company to facilitate the process.

Toyota Fudosan, a company owned by the Toyota Group entity, will invest approximately $180 billion to promote cooperation within the group.

Toyota Chairman Akio Toyoda will donate $1.1 billion.

In addition, Toyota will invest in non-voting preferred stocks of approximately 7 billion digits.

The investments will be funded by funding Toyota Industries stocks from Toyota Fudosan, Akio Toyoda and Toyota Motor's earnings from the sale of Toyota Industries stocks.

As part of the deal, Toyota Motor, Aisin, Denso and Toyota Tsusho will sell their Toyota Industries shares while acquiring their own shares through tendered discounted Treasury shares.

Although Toyota will maintain its investment in the Toyota industry through the above preferred stocks, the move will dissolve the cross-equity arrangement between Toyota industry and the four companies.

Toyota Group noted that it is shifting its focus to becoming a mobility company, including people, goods, information and energy.

Toyota Industries specializes in merchandise, developing autonomous technologies for logistics equipment such as forklifts, logistics management software and environmentally friendly powertrains, as well as utilization data related to commodity movement.

The company believes that privatization aims to strengthen cooperation within the Toyota Group and enable faster and more dynamic advancements in these areas to make the Toyota industry a key player in the commodity mobility industry.

Toyota Group has been reviewing its capital relationships to support sustained growth since the 2023 fiscal year.

In its press release, the group said ongoing discussions to determine the best structure for its transformation into a liquid company and to refine its capital relationships to enhance competitiveness.

“Toyota Group Launches Privacy in the Toyota Industry” was originally created and published by Motor Finance Online, a global brand owned by Data.

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