Toyota Motor Corporation's shares rose notably on Thursday amid rising investor debate over the company’s tender offer to acquire its major affiliate, Toyota Industries Corporation. The contested offer has garnered public criticism from Elliott Investment Management, which asserts that Toyota’s bid undervalues minority shareholders’ stakes by a significant margin.
On Wednesday evening, Toyota announced that it had increased its buyout price for Toyota Industries to 18,800 yen per share, equivalent to approximately $118.11. This figure marked an advance from the earlier offer of 16,300 yen per share, which had been proposed back in June of the previous year during the company’s efforts to move the unit toward privatization, according to CNBC reports.
Despite the updated proposal, Elliott Investment Management L.P., alongside Elliott Advisors (UK), has openly challenged the valuation underpinning this revised tender offer. They argue the price offered falls short of the intrinsic value of Toyota Industries’s diversified and profitable holdings.
In a statement dated November 11, 2025, Elliott emphasized that the proposed transaction “very significantly undervalues Toyota Industries” and criticized both the lack of transparency in the transaction process and the governance procedures followed. The investment firm conveyed that the true asset value embedded in Toyota Industries substantially exceeds the offered consideration.
Elliott’s concerns revolve chiefly around valuation discrepancies. The firm’s assessment situates the intrinsic worth of Toyota Industries shares at greater than 25,000 yen each, an estimate anchored in recent appreciations observed in Toyota Motor and related group equities that comprise a critical component of Toyota Industries’s asset portfolio.
The activist investment group stressed that it does not intend to tender its shares under the existing buyout terms and urged fellow minority shareholders to similarly reject the current structure of the transaction, citing significant concerns about fairness and valuation adequacy.
A central aspect of Elliott’s argument is the strong performance of Toyota Motor and other entities within the Toyota conglomerate. The combined equities have appreciated roughly 40% recently, which Elliott believes warrants a higher valuation multiple for Toyota Industries’s shares given their considerable exposure to these underlying assets.
Market data supports the view of rising valuations in Toyota Motor’s stock, which has appreciated over 26% in the trailing year. This equity can be accessed by investors through the Toyota Motor Corporation ADR hedged security (NYSE: TMH), which offers exposure to Toyota Motor's price movements.
Concurrently, on the day the news broke, Toyota Motor shares gained 2.73%, closing at $234.09, a level classified as a new 52-week high according to Benzinga Pro data. This price movement highlights the ongoing bullish sentiment despite the contention surrounding the affiliate’s tender offer.
Investors tracking the situation should note that Toyota Motor Corporation remains a key player in global automotive markets, and the outcome of this transaction could affect valuation perceptions regarding both the parent company and its affiliated entities.
In summary, the conflict between Toyota and Elliott Investment Management underscores challenges commonly encountered during privatization efforts involving significant minority stakes. Valuation disagreements, transparency issues, and governance concerns have come to the forefront as Toyota attempts to consolidate ownership of Toyota Industries.
The scenario exemplifies the scrutiny activist investors apply to tender offers, especially when they believe the price does not reflect the underlying asset value. Elliott’s public opposition carries weight, given its analytical approach to intrinsic value and recent market performance of Toyota Group stocks.