toyota wins investor vote on controversial new shares
Last Updated : GMT 06:49:16
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 06:49:16
Arab Today, arab today

Must be held for 5 years, will not be publicly traded

Toyota wins investor vote on controversial new shares

Arab Today, arab today

Arab Today, arab today Toyota wins investor vote on controversial new shares

Shareholders enter headquarters of Japanese auto giant Toyota Motor
Tokyo - Arab Today

Toyota won approval Tuesday for a controversial new share sale that it defended as a way to lure stable, long-term investors, overcoming stiff opposition from some institutional shareholders overseas.

The world's biggest automaker said 75 percent of shareholders voted in favour of the plan that would see it sell up to 50 million of the new shares, which must be held for five years and will not be publicly traded.

Largely restricted to Japanese investors, the new "Model AA" shares carry voting rights and will be priced at a 20 percent premium on Toyota's common shares, which closed at 8,395 yen ($68) in Tokyo.

Dividends paid on the new shares would rise from 0.5 percent to 2.5 percent by the end of the five-year holding period when investors could convert them to common shares or Toyota would repurchase them, it said.

Later Tuesday, the company said it would buy back as much as 600 billion yen ($4.9 billion) in stock to guard against dilution from the new share issue.

Toyota, which booked a record $18 billion profit in its latest fiscal year, said the share structure would lure longer-term investors and help it fund expensive research work, particularly on next-generation technology such as fuel cell cars.

The vote comes weeks after Japan formally adopted a corporate governance code that was hailed as ushering in a new era of transparency for investors.

US-based advisory Institutional Shareholder Services said the new shares would reduce investors' influence over management decisions.

"It is difficult to escape the impression that the company wants to increase stable and silent investors by replacing common shareholders with Model AA shareholders," it added.

The California State Teachers’ Retirement System, which announced it would vote against the plan, said it was "not in the best interests of all Toyota common stock shareowners -- particularly foreign shareowners".

We do "not  believe that the creation of a dual class of common stock aligns with the 'one share, one vote' principle", it said.

"Toyota’s Model AA Class Shares would be unlisted and offered only in Japan, thus hindering investors outside of Japan from participating."
Source: AFP

 

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

toyota wins investor vote on controversial new shares toyota wins investor vote on controversial new shares

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

toyota wins investor vote on controversial new shares toyota wins investor vote on controversial new shares

 



GMT 04:23 2017 Tuesday ,20 June

Oil prices flat after weeks of steep declines

GMT 13:19 2014 Thursday ,03 April

Stevie Wonder to top bill at Montreux Jazz Festival

GMT 23:20 2017 Sunday ,03 September

Top 14 champions Clermont sink Toulon in rematch

GMT 07:58 2017 Thursday ,07 December

World leaders slam Jerusalem move

GMT 04:19 2016 Wednesday ,23 November

VP launches UAE University Science and Innovation Park

GMT 19:31 2017 Thursday ,23 February

'In negotiations' to fight Amir Khan

GMT 12:55 2017 Wednesday ,20 September

Obama begins lucrative turn as Wall Street speaker

GMT 14:15 2016 Monday ,26 December

GACA to invite bids for cargo operator’s license
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday