Toyota Family Plans Tender Offer for Key Supplier Targeted for November

Bloomberg News reported on Wednesday that the parties to Toyota Motor Chairman Akio Toyoda's plan to acquire supplier Toyota Industries, aiming for a tender offer as early as November.

According to Bloomberg, Toyota Industries has chosen SMBC Nikko Securities as its adviser, and Nomura Holdings is advising a special purpose vehicle that Toyoda established for the buyout.

The largest carmaker in the world announced late last month that it was thinking about investing in a possible buyout of the key parts supplier, which is a significant forklift manufacturer and produces the RAV4 sport utility vehicle for Toyota.

Toyota Industries previously denied any buyout offer from the Toyota chairman or group, but acknowledged receiving proposals for privatization through a special purpose company.

While Toyota and SMBC Nikko Securities were not immediately available for comment, Nomura and Toyota Industries both declined to comment on the Bloomberg report.

Bloomberg reports that Toyoda's special purpose company is getting ready to issue a tender offer for all of Toyota Industries' stock. This might happen after shareholder presentations as early as November. Although formal confirmation from all parties involved is still pending, the move raises the possibility of strategic changes within Toyota's operations.