Toyota Motor to Buy Back Shares Worth More Than $5 Billion From Japan Banks, Insurers — Update
By Kosaku Narioka
Toyota Motor plans to buy back shares worth more than $5 billion held by Japanese banks and insurers.
The Japanese automaker said Tuesday that it would start a tender offer to repurchase shares worth Y806.8 billion ($5.14 billion) at Y2,781 apiece.
Toyota said it planned to buy 290.1 million shares from Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, MS&AD Insurance Group Holdings and Tokio Marine Holdings.
The automaker had said in May that it would buy back up to Y1 trillion of its shares by the end of April 2025, partly to respond to any divestment plans from its stakeholders.
Japanese financial regulators have pressed companies to cut their stakes in other listed local companies to improve corporate governance. Advocates for a reduction in cross-shareholdings say banks and insurers that hold stakes in carmakers, for instance, may not oppose bad management decisions out of fear of losing their lending or insurance businesses.
Earlier this month, Honda Motor said it planned to offer shares worth billions of dollars currently held by Japanese banks and insurers as part of efforts to broaden its shareholder base and improve discipline over management.
Write to Kosaku Narioka at kosaku.narioka@wsj.com
(END) Dow Jones Newswires
July 23, 2024 03:57 ET (07:57 GMT)
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