Elliott Investment Management has taken aim at Toyota Industries Corp. (TYIDY), quietly amassing nearly a 5% stake and challenging what it calls an undervalued buyout led by Akio Toyoda. The hedge fund told management that the proposed 16,300-per-share offer significantly underprices the company, pressing for a more transparent process and stronger governance. The 4.7 trillion ($30.5 billion) deal, one of Japan’s largest-ever privatization attempts, would see Toyota Industries absorbed under Toyota Fudosan Co.an unlisted entity chaired by Toyoda himselftightening the family’s control over the wider Toyota group.
But the market is already speaking louder than the offer. Toyota Industries’ shares closed at 17,250 in Tokyo, comfortably above the proposed buyout price, and have stayed there since late August. Analysts are siding with shareholders: United First Partners pegs fair value around 22,782 per share, while Global Equity Research puts it closer to 19,607. Elliott’s focus is sharpthe fund sees rising value in Toyota Industries’ cross-shareholdings, which have climbed more than 20% since the privatization plan was unveiled. Investors argue that the buyout undervalues these holdings and that minority shareholders deserve a fairer shake.
The dispute lands at a pivotal moment for Japan’s corporate landscape, where activism is gaining traction after years of boardroom opacity. A record 146 activist campaigns took place last yearsecond only to the U.S.as global investors push for fairer pricing and governance reform. Yet Toyota’s leadership is holding its ground. CEO Koji Sato has said there are no plans to sweeten the deal. The tension between Elliott’s demands and Toyota’s resolve could define a new chapter in Japan’s corporate governance storyone where even the country’s most established business empires are learning they can’t ignore the market forever.
AloJapan.com