Toyota is selling a part of its stake in components maker Denso to raise cash for its drive toward electric vehicles and other innovations, Japan's top automaker said Wednesday. The number of shares Toyota Motor Corp. plans to sell total more than 124 million shares, lowering its stake in Denso Corp. from 24.2% to 20%, while remaining the top stakeholder.
TOKYO (Reuters) -Toyota and two affiliates will divest at least 8% of supplier Denso, the companies said on Wednesday, a $4 billion deal that sparked investor hopes the world's top-selling automaker will shed more of its numerous cross-shareholdings. The share sale, which was first reported by Reuters on Tuesday, will be Japan's second biggest this year and the largest in the global auto industry in more than a decade, according to LSEG data. Denso, the world's second-largest maker of automotive components and a pillar of the Toyota group, will buy back some of its own shares in the open market to lessen the impact of the sale.
Japan's Nikkei share average ended lower on Wednesday in a listless trade as investors continued to sell stocks to book profits after last week's rally. The Nikkei index fell 0.26% to close at 33,321.22 after opening 0.49% lower and trading in positive territory earlier in the session. "Investors remained cautious about the recent gains in the Nikkei so they took a pause in buying," said Jun Morita, general manager of the research department at Chibagin Asset Management.