Toyota Industries Shares Expected to Climb Following Buyout Consideration

Tokyo: Shares of Toyota Industries are predicted to experience a significant surge on Monday. This follows an announcement from Toyota, the Japanese automaker, that it is considering investing in a potential buyout of the key parts supplier, Toyota Industries.

Trading in Toyota Industries shares was halted on Monday due to an excess of buy orders.

The pending transactions suggest the price is set to reach its daily upper limit of 16,225 yen, which represents a 23% increase from Friday’s closing price of 13,225 yen.

Data from LSEG, dating back to early 1984, indicates such a rise would be the largest single-day increase in the stock’s value in over 40 years.

In a filing submitted to the Tokyo stock exchange on Saturday, Toyota stated it was evaluating several possibilities regarding Toyota Industries, including making a partial investment.

Potential $42 Billion Buyout

A report by Bloomberg News on Friday suggested that Akio Toyoda, the chairman of Toyota, and his family had proposed acquiring Toyota Industries in a deal potentially worth 6 trillion yen ($42 billion).

Toyota Industries released a statement on Saturday acknowledging it had received proposals to become a private entity through a special purpose company. However, the company refuted claims of receiving a buyout offer from the Toyota chairman or the Toyota group.