Elliott Investment Management Criticizes Toyota Industries' Tender Offer Valuation

Background

Elliott Investment Management L.P., alongside its affiliate Elliott Advisors (UK) Limited, recently made a notable announcement addressing Toyota Industries Corporation. With a significant ownership stake in the company, Elliott believes that the newly proposed tender offer price of ¥18,800 per share fails to reflect the true value of Toyota Industries.

Revised Tender Offer Price

The increase in the tender offer price is a response to previous criticisms regarding the inadequacy of terms presented to shareholders. However, Elliott argues that even the revised amount significantly undervalues Toyota Industries, suggesting that the real worth is closer to ¥25,000 per share. This figure is supported by diligent analysis conducted by Elliott's team.

Asset Valuation

Elliott emphasizes the exceptional quality of Toyota Industries' businesses, which not only dominate their respective markets but also boast substantial financial assets. Particularly, the recent valuation hike of more than ¥5,000 per share since June 2025 is attributed to the notable 40% increase in value stemming from their holdings in both Toyota Motor and other affiliated Toyota Group companies. Furthermore, this valuation rise is amplified by positive market movements affecting the company's key competitors.

Opposition to Offer

In a decisive statement, Elliott opposed the newly structured tender offer, expressing that it falls short of the interests of minority shareholders. Their stance is firm: they will not tender their shares under the current conditions and will actively encourage fellow shareholders to reject the proposal. Their commitment to safeguarding shareholder interests underscores the importance of fair valuation in major corporate decisions.

About Elliott Investment Management

Founded in 1977, Elliott Investment Management is one of the longest-running funds in the industry, managing roughly $76.1 billion in assets as of June 30, 2025. The fund stands backed by a diverse pool of investors, including pension plans, foundations, and individual families. Elliott Advisors (UK) Limited serves as its UK affiliate, working alongside Elliott to engage effectively in shareholder activism and investment strategies focused on value enhancement.

Conclusion

As the tender offer unfolds, the next steps taken by Elliott will be keenly observed by both investors and analysts. Their determined refusal to acquiesce to an undervalued proposal highlights the critical role of activist shareholders in shaping corporate governance and strategy. Stakeholders will undoubtedly await further developments in Elliott’s campaign to convince other shareholders to uphold their interests against what they perceive as insufficient offer terms.