Dec. 11 at 4:40 PM
Elliott Management disclosed that its stake in Toyota Industries has surpassed 5%, arguing that Toyota Motor’s offer to acquire the forklift maker undervalues the company. Toyota Industries’ shares trade around ¥17,770—about 9% above Toyota Motor’s ¥16,300 bid—reflecting investor expectations for a higher price.
The two companies are intertwined through cross-shareholdings: Toyota Motor owns about 25% of Toyota Industries, while Toyota Industries holds stakes worth roughly
$30 billion in Toyota Motor, Toyota Tsusho, and Denso. Buying Toyota Industries would help unwind this complex structure, a goal Japanese regulators have encouraged.
Elliott contends that the offer undervalues Toyota Industries’ core operations, which exclude its equity stakes and are valued at about
$19 billion. With projected 2026 Ebitda of
$2.8 billion, the business is trading at under 7× Ebitda—below the roughly 8× multiples seen for peers like KION and Hyster-Yale.
$TM