Notice Concerning Sale of Part of Shares in DENSO CORPORATION Held by Toyota Industries
[Translation]
Toyota Industries Corporation (President: Koichi Ito; "Toyota Industries") announces today that it has decided to participate, as one of the sellers, in the secondary distribution of common stock of DENSO CORPORATION (President: Shinnosuke Hayashi) implemented by that company (the "Secondary Distribution"), and will sell part of its shares in DENSO CORPORATION (the "Sale of Shares"). For details of the Secondary Distribution, please refer to "DENSO Announces Secondary Offering of Shares and Change of Principal Shareholder" published today by DENSO CORPORATION.
Toyota Industries recognizes that improvement of profitability, capital efficiency, and asset efficiency is one of the important management issues in aiming at sustainable business growth and increased corporate value over the mid- to long-term, and has sought to continuously strengthen corporate governance, taking into consideration the expectations of stock markets as well. It continues to reconfirm the purpose of its cross-shareholdings and consider their further reduction. Meanwhile, the Sale of Shares will contribute to improving asset efficiency, while the acquired funds will be invested in growth fields such as automobile electrification products and materials handling equipment automation.
- Shares to be sold
Shares of DENSO CORPORATION (119,785,400 shares) - Reason for sale
Efficient management of asset holdings - Future prospects
Toyota Industries' selling price to underwriters related to the Secondary Distribution will be determined on any day during the period from December 13, 2023 to December 18, 2023. It expects to record a gain on the Sale of Shares in its non-consolidated financial statements for the fiscal year ending March 2024. The Sale of Shares will have no impact on profit in the consolidated financial statements because Toyota Industries adopts the International Financial Reporting Standards (IFRS).
The impact of the Sales of Shares on Toyota Industries' financial results will be announced as needed immediately after determination of the selling price.
Toyota Industries will maintain a business relationship with DENSO CORPORATION after completing the Sale of Shares.