Elliott Woos Shareholders Backing Toyota Industries Buyout, Sources Say

Reuters

10:37 JST, February 24, 2026

TOKYO, Feb 24 (Reuters) – Elliott Management has offered to pay around market price to buy Toyota Industries shares from holders who have agreed to a tender offer that the U.S. activist said undervalues the forklift truck maker, two people familiar with the matter said.

Elliott has approached shareholders including suppliers and financial institutions that have backed the Toyota group’s take-private bid, the people said, declining to be identified as the information is not public.

Reuters is reporting details of Elliott’s offer for the first time. Elliott and Toyota declined to comment.

Elliott’s success would translate into reduced support for the buyout, hampering Toyota’s attempt to reshape the group.

The deal is widely seen as a test case for governance in Japan where regulators are encouraging companies to unwind cross-shareholding arrangements and improve capital efficiency.

Toyota Industries’ share price closed at 20,200 yen ($130) on Friday. Markets were closed on Monday for a public holiday.

That was roughly 7% above the 18,800 yen proposed by Toyota, which announced the plan in June and this month extended the offer due to insufficient shareholder support.

Elliott has said Toyota Industries shares are worth more than 26,000 yen each. It owns around 7% of the company, showed a filing from early February, and must report to the stock exchange whenever its holding changes by 1% or more.

Toyota sweetened its offer in January and has said its raised price reflects the intrinsic value of the company and that it has no intention of hiking again.

As of mid-February, Toyota needed 9% of shareholders to agree to sell the group their holdings for it to reach the two-thirds majority needed to take control of the company.

Shareholders that have agreed to sell include Ibiden 4062.T, Mitsui Sumitomo Insurance and Tokio Marine & Nichido Fire Insurance, filings from January showed.

Ibiden has outlined plans to reduce cross-shareholding arrangements and in January said selling its Toyota Industries stock will improve its own corporate value and benefit shareholders.