Toyota Plans to Reduce Stake in Top Auto-Parts Supplier Denso
By River Davis
Toyota Motor said it plans to sell about 125 million shares in its top auto-parts supplier Denso, a stake worth about $1.95 billion based on Denso's share price as of Wednesday's close.
Toyota's stake in Denso would fall to 20% from around 24%, Toyota Chief Communications Officer Jun Nagata said, speaking online Wednesday. Denso said in a separate statement that it would buy back up to 125 million shares.
The move comes as Japanese companies face pressure to unravel stakes they have long held in business partners or fellow companies in their conglomerate groups. Some investors say such cross-shareholding structures prop up entrenched management and depress stock valuations. Toyota has also been ramping up its investments in electric vehicles.
Going forward, Toyota plans to hold on to some stakes in affiliate companies while replacing investments deemed "not having significance," Nagata said. Toyota will reinvest proceeds from the Denso share sale in Toyota's future growth, he said.
Write to River Davis at river.davis@wsj.com
(END) Dow Jones Newswires
November 29, 2023 03:30 ET (08:30 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.-
Why Immigration Has Boosted Job Gains and the Economy
-
What to Invest in During High Inflation
-
Never Mind Market Efficiency: Are the Markets Sensible?
-
Starbucks Stock Could Use a Pick-Me-Up After Big Selloff; Is it a Buy?
-
5 Cheap Stocks to Buy From an Attractive Part of the Market
-
Markets Brief: All Eyes On Inflation
-
5 Things We Learned From the Q1 Earnings Season
-
After Earnings, Is Palantir Stock a Buy, a Sell, or Fairly Valued?
-
Walmart Earnings: Low Prices and Strong Digital Presence Drive Market Share Gains
-
After Earnings and a Big Selloff, Is Shopify Stock a Buy, a Sell, or Fairly Valued?
-
Cisco Earnings: Positive Guidance and Splunk Inclusion Align With Our Long-Term Thesis
-
3 Warren Buffett Stocks to Buy After Berkshire Hathaway’s Just-Released 13F Filing
-
Going Into Earnings, Is Nvidia Stock a Buy, a Sell, or Fairly Valued?
-
After Earnings, Is Arista Stock a Buy, a Sell, or Fairly Valued?
-
A Cheap Dividend Aristocrat to Buy Before It Bounces Back
-
Alibaba Earnings: More Positive Outlook Despite Mixed Results