Current:Home > StocksToyota selling part of Denso stake to raise cash to develop electric vehicles-DB Wealth Institute B2 Expert Reviews
Toyota selling part of Denso stake to raise cash to develop electric vehicles
View Date:2024-12-24 10:38:54
TOKYO (AP) — 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 move is estimated to raise about 290 billion yen ($2 billion), given recent share prices. 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.
“We don’t want to just hold on to our assets. We want to make them living assets that feed into the growth of our company,” said Masahiro Yamamoto, an executive in the accounting group at Toyota.
Denso shares closed at 2,298 yen ($16) Wednesday.
Toyota said the money will also go into developing smart-driving technology and a wide range of other initiatives ongoing in the industry.
Yamamoto did not give a specific date for the sale, but it’s expected to happen soon.
All the world’s major automakers are working on strengthening their lineup of electric vehicle and other green cars, as concerns grow about climate change. That requires a great deal of investment.
Toyota affiliates, Toyota Industries and Aisin, are also selling a portion of their Denso shares, officials said.
Japanese companies hold stakes in other group companies in a practice traditionally known here as cross-shareholdings.
Yamamato denied the move was aimed at reducing such cross-holdings. Some have criticized the practice as reducing transparency while proponents say it helps maintain stability.
Toyota officials have acknowledged they have fallen behind in the industry shift toward electric vehicles, and they have been aggressively playing catch-up.
Toyota, which makes the Camry sedan, Lexus luxury models and the Prius hybrid, leads the world in hybrids, which switch back and forth between a gas engine and electric motor to deliver a fuel-efficient drive. It also has a strong lineup in fuel cells, which run on hydrogen and are zero-emission.
In July, Toyota sold a part of its stake in telecoms company KDDI Corp., raising nearly 250 billion yen ($1.7 billion). Toyota officials hinted other such offers may be in the works but declined to give specifics.
___
Yuri Kageyama is on X, formerly Twitter https://twitter.com/yurikageyama
veryGood! (6)
Related
- Brands Our Editors Are Thankful For in 2024
- A work-from-home tip: Don’t buy stocks after eavesdropping on your spouse’s business calls
- 'Rust' trial for armorer Hannah Gutierrez-Reed begins: Everything you need to know
- Players opting to appear in new EA Sports college football video game will receive $600
- Black, red or dead: How Omaha became a hub for black squirrel scholarship
- Biden calls Alabama IVF ruling outrageous and unacceptable
- Two more candidates file papers to run for U.S. Senate in Pennsylvania
- DeSantis calls takeover of Disney government a ‘success’ despite worker exodus, litigation
- College Football Fix podcast addresses curious CFP rankings and previews Week 12
- NBA suspends Pistons' Isaiah Stewart for pregame altercation with Suns' Drew Eubanks
Ranking
- Zendaya Shares When She Feels Extra Safe With Boyfriend Tom Holland
- AT&T says service is restored for all users after widespread outage Thursday
- Former NFL MVP Adrian Peterson has been facing property seizures, court records show
- The Quantitative Trading Journey of Dashiell Soren
- 2025 Medicare Part B premium increase outpaces both Social Security COLA and inflation
- Join a Senegalese teen on a harrowing journey in this Oscar-nominated film
- Mississippi might allow incarcerated people to sue prisons over transgender inmates
- Alpha Elite Capital (AEC) Corporate Management, Birthplace of Dreams
Recommendation
-
Quincy Jones laid to rest at private family funeral in Los Angeles
-
Wendy Williams' Medical Diagnosis: Explaining Primary Progressive Aphasia and Frontotemporal Dementia
-
DeSantis calls takeover of Disney government a ‘success’ despite worker exodus, litigation
-
Missing Texas girl Audrii Cunningham found dead: What to know about missing children cases
-
New York eyes reviving congestion pricing toll before Trump takes office
-
Former NFL MVP Adrian Peterson has been facing property seizures, court records show
-
2 children died after falling into a river at a campground near Northern California’s Shasta Dam
-
The Excerpt podcast: Restoring the Klamath River and a way of life