Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post

Toyota Group Announces Sale Of Denso Shares Worth US$ 4.7 Billion

- Advertisement -

The stake sale occurs as the Japanese giant accelerates its electric vehicle production.

Toyota Motor and its affiliates, Toyota Industries and Aisin are set to divest approximately 10% of their shares in Denso, a key automotive components manufacturer, by the end of this year. This transaction is anticipated to be valued at around US$ 4.7 billion, as reported by various news agencies. This strategic move aligns with Toyota’s ambition to enhance its production of fully electric vehicles, a venture that demands significant capital investment.

The proposed sale, involving shares amounting to roughly 700 billion yen (US$ 4.7 billion) at current market values, is part of Toyota’s broader strategy to focus on electric vehicle technology. Toyota Motor will sell slightly less than half of the approximately 10% stake, with the balance shared between Toyota Industries and Aisin. Denso, recognized as the world’s second-largest automotive component manufacturer and a crucial supplier for Toyota, is also planning to repurchase some of its shares from the open market. This move is intended to mitigate any potential impact on its stock price, as per sources who requested anonymity due to the confidential nature of the discussions.

- Advertisement -

Denso has acknowledged the possibility of a share sale and buyback alongside other capital strategies but clarified that no final decisions have been made. Meanwhile, a Toyota spokesperson stated that the company could not comment on the matter, and an Aisin representative also declined to comment.

Despite this sale, Toyota Motor, which held a 24.2% stake in Denso as of September’s end, is expected to retain its position as the principal shareholder. The shares are likely to be purchased predominantly by domestic investors, though the exact pricing remains undetermined, as per sources.

This initiative follows Toyota’s announcement in July to sell shares worth about 250 billion yen to telecommunications firm KDDI Corp. This was part of Toyota’s comprehensive plan to enhance the efficiency and cost-effectiveness of its battery-electric vehicles.

- Advertisement -

Most Popular Articles

Aryaman Raghuvanshi
Aryaman Raghuvanshi
Aryaman Raghuvanshi is a Journalist at EFY. His passion is to explore the future of mobility, which gets him to cover latest technologies shaping the future of automobiles and EVs. But, at times he writes on broader technologies too. LinkedIn: https://www.linkedin.com/in/aryaman-raghuvanshi-2431b7153

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Captcha verification failed!
CAPTCHA user score failed. Please contact us!

Exclusive

Roboshuttles, Autonomous Buses Revenue To Surpass $67 Billion By 2044

0
Experiencing gradual growth and slow adoption, the autonomous buses and roboshuttles global market may cross $67 billion after the next twenty years with a...

Global Smartphone Market Up 6.5% YoY in Q2 2024

0
Boosted by better consumer confidence and positive economic factors, reports say that the global smartphone sell-through volumes increased by more than 6% YoY in...

AI Startup Funding Drops 10% YoY In 2023

0
With total investment falling by 10%, 2023 recorded AI startup backing of $42.5 billion, a decline after hitting the peak in 2021 as per...

Buzz

MyPickup Secures INR 1.5 Crore In Seed Funding From Inflection Point Ventures

0
This funding will fuel the development of advanced scheduling algorithms, a user-friendly mobile app, and brand enhancement. Inflection Point Ventures, backing over 200 startups...

Roadcast & AMU Partner To Simplify And Secure EV Leasing

0
By incorporating GPS technology into the 3W e-rickshaws that AMU leases, the company can forecast and pinpoint non-performing assets and likely defaulters. Additionally, the...

Sparsh CCTV Invests $3 Billion To Boost Manufacturing

0
Sparsh CCTV invested $3 billion to enhance production capacity, aligning with 'Make in India' for surveillance equipment, focusing on scaling operations in Kashipur. Sparsh CCTV ...

Important Sectors

MyPickup Secures INR 1.5 Crore In Seed Funding From Inflection Point Ventures

0
This funding will fuel the development of advanced scheduling algorithms, a user-friendly mobile app, and brand enhancement. Inflection Point Ventures, backing over 200 startups...

Roadcast & AMU Partner To Simplify And Secure EV Leasing

0
By incorporating GPS technology into the 3W e-rickshaws that AMU leases, the company can forecast and pinpoint non-performing assets and likely defaulters. Additionally, the...

Sparsh CCTV Invests $3 Billion To Boost Manufacturing

0
Sparsh CCTV invested $3 billion to enhance production capacity, aligning with 'Make in India' for surveillance equipment, focusing on scaling operations in Kashipur. Sparsh CCTV ...

JinkoSolar Partners With Saudi Arabia To Manufacture Solar Cells

0
To establish a new solar cell manufacturing unit in the Middle East, JinkoSolar has joined hands with the PIF and Vision Industries of Saudi...

IREDA Announces $2.9 Billion Investment To Boost Renewable Energy Infrastructure

0
IREDA announced a $2.9 billion investment in a 900 MW hydroelectric power project in Nepal, expanding renewable energy infrastructure and fostering international collaboration. On Tuesday, the...

Manufacturing

Sparsh CCTV Invests $3 Billion To Boost Manufacturing

0
Sparsh CCTV invested $3 billion to enhance production capacity, aligning with 'Make in India' for surveillance equipment, focusing on scaling operations in Kashipur. Sparsh CCTV ...

Cooper Standard Launches Ecoflow For Electric Vehicles

0
This scalable fluid control technology, which can be used across various powertrains, is particularly effective for managing the intricate glycol thermal needs of fully...

Economic Ties Strengthens Between Taiwan And India

0
According to the trade body Chairman, James Huang, Taiwanese firms relocate supply chains from China to India, boosting India’s manufacturing and bilateral trade. As global...

LeePra Chooses Delvitech’s 3D AI AOI System

0
Eyeing efficient quality monitoring, LeePra Technologies has partnered with Delvitech to include advanced AI solutions in its manufacturing units. Last week, EMS provider LeePra Technologies...

India & Russia Partner To Boost India’s Defence Capabilities

0
Backed by Russia, HAL aims to produce and export Sukhoi Su-30 fighter jets in Nashik to enhance India's aerospace prowess and export potential. India's state-owned...