Toyota Industries Corp. logo at the company’s Nagakusa plant in Obu, Aichi Prefecture, Japan.
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Shares of forklift maker Toyota Industries rose on Thursday, a day after Toyota Motor cut its tender offer price to $35 billion by 15% to $35 billion.
Shares rose 5.8% after Toyota Motor reported late Wednesday made a purchase offer announced plans to take the company private for 18,800 yen ($118.11) per share, up from 16,300 yen announced last June for the group company.
Last year, Toyota Motor sought to buy it Japan’s largest corporate group 4.7 trillion yen. The deal included Chairman Akio Toyoda’s ¥1 billion investment and about ¥700 billion in Toyota Motor’s non-voting preferred shares.
In December, Toyota Industries said it was asking for a higher price amid concerns that the deal’s chances of success were limited.
“While the revised offer is an all-time high, it remains light,” said Arun George, global equity research analyst at SmartKarma.
That falls below the middle of the valuation range set by an independent adviser, suggesting the company may still be undervalued, he said.
Toyota Industries, the parent company of Toyota Motor, manufactures a range of products including forklifts, engines, electronic components and stamping dies.