Elliott Agrees to Tender Shares as Toyota Raises Take-Private Offer for Toyota Industries to $30 Billion

BY COMFORT OGBONNA

Elliott Investment Management has agreed to tender its shares in Toyota Industries after Toyota Motor Corporation increased its take-private bid to 20,600 yen per share, valuing the transaction at approximately $30 billion and bringing an end to a protracted dispute over pricing that had stretched on for months.

In a statement released on Monday, Elliott said it intended to accept the revised terms, describing the higher price as an “improved outcome” for minority shareholders. The decision marks a significant turning point in the negotiations, which had drawn close scrutiny from investors and corporate governance advocates in Japan and abroad.

Toyota Motor had initially offered 16,300 yen per share for Toyota Industries, widely known as TICO, a valuation that sparked criticism from minority investors who argued that the proposal significantly undervalued the company’s assets, growth prospects, and strategic importance within the broader Toyota group. Toyota Industries, a key supplier within the conglomerate, manufactures forklifts, automotive components, and industrial equipment, making it a critical pillar of the group’s operations.

Facing pushback, Toyota Motor later raised its bid to 18,800 yen per share. However, Elliott and other shareholders maintained that the revised offer still fell short of fair value, prolonging the standoff and casting uncertainty over the tender process, which had been scheduled to close on Monday.

The activist fund, founded by billionaire investor Paul Singer, had been vocal in pressing for a higher price, arguing that the company’s intrinsic value and strategic position warranted a more substantial premium.

The latest increase to 20,600 yen per share lifts the total valuation of the deal to roughly 4.7 trillion yen, or $30 billion, representing a notable improvement over earlier proposals. Toyota Motor said the revised offer is contingent on securing loan guarantees from its banks, underscoring the scale of financing required for one of the largest take-private transactions in Japan in recent years.

In a regulatory filing on Monday, Toyota confirmed that Elliott, which had been instrumental in pushing for better terms, agreed to tender its shares under certain conditions. The move effectively ends the months-long tug-of-war between the activist investor and the Japanese automotive giant, clearing a major hurdle for the completion of the transaction.

The agreement is likely to be viewed as a victory for shareholder activism in Japan, where governance reforms in recent years have encouraged greater engagement between companies and investors. For Toyota Motor, the deal represents a strategic consolidation of a core affiliate, while for minority shareholders, the improved offer signals a stronger recognition of value after sustained pressure.