Toyota to launch $5.16 bln tender offer for own shares (updated)
23/07/2024 08:37
(Adds details from 2nd paragraph)
TOKYO, July 23 (Reuters) - Toyota Motor 7203.T 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 Financial Group 8306.T and
Sumitomo Mitsui Financial Group (SMFG) 8316.T planned to
divest Toyota 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 8766.T and MS&AD
Insurance Group 8725.T said they would sell back Toyota shares
to the automaker.
A filing earlier this month showed that Japanese financial
groups including Tokio Marine, Sompo 8630.T) and two MS&AD
units planned to sell Honda Motor 7267.T shares worth 535
billion yen.
($1 = 156.4700 yen)
(Reporting by Rocky Swift; Editing by Christopher Cushing and
Miral Fahmy)
((rocky.swift@thomsonreuters.com;))