Toyota wants to sell Denso shares
According to the Reuters news agency, citing insiders, Toyota Motor, Toyota Industries and Aisin want to sell Denso shares worth a total of around 700 billion yen (4.3 billion euros) at the end of this year, which corresponds to around ten per cent of Denso’s value.
A spokesperson for Toyota Motor initially told Reuters that it could not comment on Denso. In the meantime, the car manufacturer has essentially confirmed the report. At the end of September, Toyota Motor held around 24.2 percent of Denso’s shares – after the sale, this figure is expected to remain at 20 per cent, meaning that Toyota will remain the main shareholder.
Toyota Industries stated that nothing had been decided on the matter yet. The supplier Aisin, which is 30 per cent owned by the Toyota Group, only stated that the information about a share sale was nothing that the company itself had announced.
Denso is the world’s second-largest manufacturer of components for the automotive industry and an important supplier to Toyota. Such cross-shareholdings have grown historically in the Japanese economy and are therefore common – in recent years, however, more and more companies have slowly dissolved these shareholdings.
According to Reuters, Denso is also planning to buy back some of these shares on the open market in order to stabilize its own share price. In a statement, Denso said it was considering a share sale, buyback and other capital measures, but nothing had been decided yet.
Toyota has not prioritized battery electric cars for a long time and currently only has one BEV, the bZ4X, in dealerships in Europe. Recently, battery electric cars have become more important in the Japanese company’s decarbonization strategy alongside hybrids and long-favoured fuel cell cars.