The Toyota group, through a special purpose company (SPC), has decided to extend the tender offer (TOB) period for the privatization of Toyoda Gosei until March 2. Originally set to expire on the same day it was announced, the offer price remains unchanged at 18,800 yen per share. This move comes amid opposition from American investment firm Elliott Investment Management, which has increased its stake in Toyoda Gosei to over 7%, causing the share price to trend above the TOB price.

The Toyota group's rationale for the extension is to provide investors with an additional opportunity to make decisions on the buyout, thereby increasing the likelihood of the offer's success. Toyota maintains that the offered price reflects the intrinsic value of the shares and has no intentions of changing it. The situation highlights the tensions between domestic and foreign investors, especially as Elliott's involvement puts pressure on the proposed privatization efforts.

As the deadline approaches, market observers will be closely watching how the dynamics play out, particularly in relation to Elliott's strategy and further moves in Toyoda Gosei's share price. The outcomes of this tender offer not only impact Toyoda Gosei but also signal shifts in regional investment patterns and corporate governance practices in Japan, especially as large corporations engage in privatization amid changing market conditions.