Toyota looks to sell Denso stake – report
Toyota is looking to sell part of its stake in automotive component supplier Denso says a report by Reuters.
The sale of 10% of Denso by Toyota, Toyota Industries and Aisin is likely to be worth around $4.7bn and would raise cash for the development of battery electric vehicles and revamping its production lines.
After the sale, Toyota will remain the largest shareholder in the company which is the world’s second largest tier one supplier. It moved its electronics production to Denso in 2018.
“We are in a phase of change that only happens every hundred years,” said Toyota President Akio Toyoda at the time. “While we sell more than ten million vehicles a year and maintain and develop our current activities, we are also facing the challenge of becoming a mobility company. In this environment, it is important how effectively we use our limited resources and to what extent we can increase the competitiveness of the entire Toyota Group”.
Denso said it was considering a share sale, a buyback and other capital measures, but that nothing had yet been decided. A Toyota spokesperson said the company was not in a position to comment, while a Toyota Industries spokesperson said nothing had been decided.
Denso is headquartered in Kariya, Japan with around 200 facilities worldwide and 165,000 staff. In November it made changes to its board of directors, with CTO Yoshifumi Kato (above, left) adding responsibility for the sensor systems business unit, while Eiichi Kurokawa took over as the head of the semiconductor business unit. It is aiming to invest about ¥500bn ($5bn) in semiconductors by 2030 and will triple the scale of the business to ¥700bn ($7bn) from the current level by 2035.
It is also accelerating the introduction of SiC power semiconductors and developing in-house analog sensors and a chiplet-based system on chip.
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