Toyota Trimming Denso Stake May Raise About $1.9 Billion for EV Shift
- Toyota and affiliates jointly own 34% of supplier Denso
- Corporate Japan under pressure to cut cross shareholdings
Denso has a long history with Toyota, after being split off from the carmaker in 1949 as a separate entity.
Photographer: Tomohiro Ohsumi/BloombergThis article is for subscribers only.
Toyota Motor Corp. and its affiliated suppliers will cut their shareholdings in electric parts maker Denso Corp., freeing up money that can be used to fund their shift to electric vehicles.
The world’s biggest carmaker plans to lower its stake in Denso to 20% from 24%, it said in a statement Wednesday. That could generate about ¥287 billion ($1.9 billion), based on Denso’s latest stock price. Denso said it will buy back as much as ¥200 billion worth of its own shares.