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Updates with share moves.
Investing.com-- Shares of Toyota Industries (TYO:6201) surged to an all-time high on Tuesday after a media report showed that the company plans to accept a takeover offer from Toyota Motor Corp (H:7203).
A special-purpose company backed by Toyota Motor and Chairman Akio Toyoda will launch a tender offer as early as May or June, in a move that could take the company private, Kyodo News reported on Monday, citing sources familiar with the matter.
The acquisition value is expected to total around 6 trillion yen ($41 billion), Kyodo reported.
Tokyo-listed shares of parts maker Toyota Industries surged 9% at open to 18,000 yen, its highest level ever.
Toyota Motor shares also gained 2% to 2,717 yen.
Financing will reportedly involve loans from major financial institutions, including Mitsubishi UFJ (NYSE:MUFG) Bank, the report said.
The move is seen as a response to increasing pressure from activist shareholders, with Toyota seeking to stabilize group management, according to Kyodo’s report.
Toyota Industries (OTC:TYIDF), which traces its roots to the original Toyota textile machinery business, serves as a key holding company within the Toyota Group, the report added.
The company has formed a special committee to assess the proposal. Its market capitalization stood at about 5.4 trillion yen as of May 19, according to Kyodo.