Automotive player Toyota Motor outlined plans to cut its shareholding in Japanese operator KDDI by around 20 per cent, by offering to sell JPY250 billion ($1.8 billion) worth of equity in the latter’s share buy-back scheme.
In a stock market statement, Toyota explained if KDDI takes-up the entire stake it wants to sell, the vehicle company’s shareholding would be reduced to 11.71 per cent from its current level 14.68 per cent.
As of KDDI’s disclosure of major shareholders dated end-March 2023, Toyota was its third-largest behind The Master Trust Bank of Japan and electronics company Kyocera.
Although Toyota specified the volume of shares it intends to offer in a forthcoming tender by the operator, it cautioned the number which end up being bought was dependent on interest from KDDI’s other investors as the communications player wants to buy a maximum of JPY250 billion of stock.
KDDI plans to launch the buy-back tender offer to investors on Monday (31 July) with settlement beginning in September.
The automotive giant noted it had been a major shareholder in KDDI since the mobile player’s formation in 2000 and will continue to be so after snipping its stake. Explaining the rationale for cashing-in part of its holding, Toyota stated it expects to require “significant investment” in electrification, intelligence systems and diversification moving forward.