The Toyota Industries Corp. logo at the company’s Nagakusa plant in Obu, Aichi Prefecture, Japan.
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Shares of forklift producer Toyota Industries jumped Thursday, a day after Toyota Moto sweetened the tender offer price for buying out the carmaker by more than 15% to over $35 billion.
Shares of Toyota Industries rose 6.3% to 19,160 yen — more than the revised tender offer.
Toyota Motor said late Wednesday it had raised the buyout offer for the group company to 18,800 yen ($118.11) per share, from 16,300 yen apiece announced in June last year, advancing plans to take the company private.
Last year, Toyota Motor, the world’s largest carmaker by sales, sought to acquire Japan’s largest corporate group for 4.7 trillion yen. The deal included 1 billion yen from chair Akio Toyoda, and Toyota Motor’s investment of about 700 billion yen in non-voting preferred shares.
In December, Toyota Industries said it had asked for a higher price, citing concerns that the deal’s chances of success were limited.
“While the revised offer represents an all-time high, it remains arguably light,” said Arun George, a global equity research analyst on SmartKarma.
It comes in below the middle of the valuation range set out by the independent adviser, suggesting the company may still be undervalued, he said.
Toyota Industries, which founded Toyota Motor, produces a range of products including forklifts, engines, electronic components, and stamping dies.