Japan’s Harmonic Drive Systems, a manufacturer specializing in speed reducers, announced on Wednesday that Toyota Motor (NYSE:TM) plans to sell complete ownership in the company through open market sales abroad.
The decision to sell these shares followed an announcement by the automaker in July, stating its intention to divest a portion of its shares in the telecom giant KDDI, aligning with its investment focus on accelerating electrification efforts.
As per a regulatory filing by the precision control equipment manufacturer, Toyota will be selling 4,379,400 shares of Harmonic Drive Systems at a price yet to be determined.
The value of this stake amounted to 18.1 billion yen ($123 million) based on Wednesday's closing price of 4,135 yen per share.
Harmonic Drive Systems has announced a buyback plan to repurchase up to 700,000 of its own shares, representing approximately 0.73% of its total outstanding stock. This move aims to mitigate the impact of the recent sale on its shareholders.
Shares of TM are up 2.24% near mid-day trading on Wednesday.