Lucid files for 1-for-10 reverse stock split requiring shareholder approval
Hino Motors (7205:JP) announced Wednesday a business integration with Mitsubishi Fuso, while simultaneously securing ¥200 billion in funding from Toyota Motor (NYSE:TM) through a third-party allotment of shares. The transaction includes ¥121.4 billion in common shares and ¥78.6 billion in non-voting class shares, resulting in a common stock dilution rate of approximately 47%.
The commercial vehicle manufacturer will also sell its Hamura plant to Toyota for ¥150 billion, addressing balance sheet and cash flow problems that have plagued the company. These financial maneuvers clear obstacles for the planned integration with Mitsubishi Fuso.
The companies agreed to a share swap ratio of 1:1.7 between Hino and Fuso. Citi maintained its Neutral rating on Hino with a price target of ¥450.00, noting the ratio potentially reflects a lower-than-expected valuation for Hino shares, likely influenced by the company’s engine certification issues.
A new listed holding company will be established to own shares of both Hino and Mitsubishi Fuso. This entity is expected to begin operations in April 2026, with Toyota maintaining a 19.9% ownership stake in the combined organization.
The consolidation represents a significant restructuring in Japan’s commercial vehicle sector, bringing together two major manufacturers under a single corporate umbrella while maintaining Toyota’s influence in the heavy-duty vehicle market.
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