Denso: Toyota group to sell Denso stake, as components maker looks to buy back shares (updated)

Aisin

29/11/2023 07:15

(Updates with the number of shares to be sold)
       TOKYO, Nov 29 (Reuters) - Toyota Motor  7203.T  and two
affiliates will sell a total of 
256,373,400 shares in auto components maker Denso  6902.T  in a
sale worth 589.1 billion yen ($4 billion) at Wednesday's closing
share price.    
    In a separate statement, Denso said it would buy back some
125 million shares, as it looks to offset the market impact of
the sale. The other sellers are sister companies Toyota
Industries  6201.T  and Aisin  7259.T , Denso said.
    Denso shares closed up 0.9% on Wednesday, having lost 4.9% a
day earlier after Reuters first reported the news. 
    Toyota, the world's top-selling automaker, is looking to
cash in on stakes in affiliates as it ramps up development and
production of fully electric vehicles. 
        Japanese companies traditionally took stakes in
affiliates and business partners - a practice known as
cross-shareholding - but have been under pressure to unwind
those holdings to improve their use of capital.
  


($1 = 147.2400 yen)

 (Reporting by Tokyo Newsroom; editing by David Dolan)
 ((ran.kim@thomsonreuters.com))