Toyota Industries reduces stake in Aichi, plans gains

Toyota Industries Corporation [TSE:6201] announced the completion of a tender offer related to the partial transfer of shares in its subsidiary, Aichi Corporation, and the execution of a three-way business alliance agreement with Aichi and Itochu Corporation. As a result of the tender offer, Toyota Industries' ownership in Aichi Corporation decreased from 54.35% to 48.68%, with the company tendering 40,521,000 shares and 9,092,100 being purchased. The transaction is valued at JPY 11,665 million, translating to JPY 1,283 per share. This move is projected to generate a JPY 30,667 million gain in Toyota Industries' individual financial statements and an approximately JPY 9,000 million increase in operating profit within its consolidated financial statements for the fiscal year ending March 31, 2026. With the tender offer commencing May 14, 2025, Aichi Corporation will transition from a subsidiary to an affiliate accounted for under the equity method.