Toyota Motor said in a filing made public on Monday that it plans to boost the tender offer price for Toyota Industries (TICO) to 20,600 yen per share - equivalent to $132 - if specific conditions are met. The company also intends to push the tender offer's closing date out to March 16.
The revised proposal represents an increase from Toyota's prior offer of 18,800 yen per share for the forklift and industrial machinery maker. The original tender offer had been scheduled to close on Monday before the filing indicated the extension.
According to the filing, the proposed uptick in the per-share price is conditional on Toyota obtaining loan guarantees from its banks. The document frames the change as dependent on securing those financing assurances, rather than as an unconditional adjustment to the bid.
The filing is the most recent episode in what Toyota described as a months-long standoff with activist investor Elliott Investment Management. Elliott had been pressing Toyota to increase the price for Toyota Industries; Toyota said in the filing that Elliott agreed to tender its shares in Toyota Industries provided certain conditions are satisfied.
The company did not add further details about the bank guarantees or the precise conditions tied to Elliott's agreement in the filing released on Monday. The filing did, however, make clear that the increase in the offer price and the deadline extension are linked to the conditional financing arrangement and the terms under which Elliott would tender its holdings.
The statement from Toyota leaves open the outcome until the bank guarantees are secured and the conditions for Elliott's tender are met. For now, the filing confirms the revised numerical offer, the new proposed closing date of March 16, and the conditional nature of the arrangement.
Summary
Toyota seeks to raise its tender price for Toyota Industries to 20,600 yen per share and extend the tender deadline to March 16, contingent on bank loan guarantees. The move follows an earlier offer of 18,800 yen and is tied to negotiations with activist investor Elliott Investment Management, which has agreed to tender shares under specified conditions, according to a filing made on Monday.