Investing.com-- Shares of Toyota (NYSE: TM ) Motor (TYO: 7203 ) jumped on Monday after the automaker revealed it is exploring a potential buyout of its key parts supplier, Toyota Industries (OTC: TYIDF ) Corp (TYO: 6201 ).
Toyota Motor Chairman Akio Toyoda has proposed a buyout of Toyota Industries, aiming to strengthen his control over Japan’s largest business empire, Bloomberg reported on Friday, citing people familiar with the matter.
The proposal values Toyota Industries, a maker of textile looms and car parts, at 6 trillion yen ($42 billion), representing a 40% premium over its market capitalization at Friday’s close, Bloomberg reported.
The automaker said in a filing on Saturday that it is exploring various possibilities, including partial investment.
Tokyo-listed Toyota Motor shares jumped 5.4% to 2,836 yen as of 02:45 GMT.
Toyota Industries shares were not traded on Monday because of a surge in buy orders.