Elliott’s stake in Toyota Industries has reportedly risen to nearly 5%, making it one of the company’s largest shareholders.
- Elliott’s stake in Toyota Industries has reportedly risen to nearly 5%, making it one of the company’s largest shareholders.
- The 4.7 trillion yen buyout plan led by Akio Toyoda has drawn investor criticism for undervaluing the group’s assets.
- The development follows Toyota Motor’s weaker profit outlook, pressured by higher U.S. tariffs and export costs.
Elliott Investment Management has reportedly told Toyota Industries that the Toyoda family’s proposed 16,300 yen-per-share buyout offer undervalues the company, adding fresh pressure to Japan’s largest privatization plan.
A regulatory filing showed Elliott held a 3.26% stake in Toyota Industries as of Sept. 30 and has since reportedly increased its holding to nearly 5%, making it one of the company’s largest shareholders, according to a Bloomberg report.
Toyota Industries’ Tokyo-listed shares rose as much as 1.8% to 17,260 yen on Tuesday, remaining above the offer price since late August.
Activist Pressure On Japan’s Biggest Privatization
The 4.7 trillion yen (30.5 billion dollars) buyout plan, led by Akio Toyoda through Toyota Fudosan Co., seeks to take Toyota Industries private under a new holding structure. The proposal has faced growing criticism from investors who say it undervalues the company and could tighten the Toyoda family’s control over Japan’s largest business group.
Elliott has reportedly urged Toyota Industries’ management to revisit the deal terms and consider alternative options for shareholders.
Valuation Dispute
Analysts at United First Partners valued Toyota Industries at 22,782 yen per share in September, while Global Equity Research placed its value at 19,607 yen in a Nov. 6 report published on Smartkarma, which are both well above the current offer price.
The market value of Toyota Industries’ largest cross-shareholdings has increased by more than 20% since the buyout proposal was announced.
Tariffs And Cost Pressures
Last week, Toyota Motor’s full-year profit outlook came in below expectations as the automaker projected operating income of about 3.4 trillion yen ($22 billion) for the year ending March 2026, short of analyst estimates near 3.9 trillion yen. The company has been contending with higher export costs after U.S. tariffs on vehicles and parts rose to 15% from 2.5%, pressuring margins and prompting a review of global pricing and production plans.
Sales increased mainly in Japan and North America despite the impact of U.S. tariffs, Chief Financial Officer Kenta Kon said, adding that Toyota is monitoring potential supply risks from chipmaker Nexperia BV. Electrified models, including hybrids and EVs, made up nearly half of total sales in the first half, with strong hybrid demand in North America and China helping offset softness in Japan.
Stocktwits Mood Turns Muted
On Stocktwits, retail sentiment for Toyota was ‘bullish’ amid ‘high’ message volume.
Toyota Motors’ U.S.-listed stock has risen 7% so far in 2025.
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