Shares of Toyota Industries (OTC: TYIDF) were poised for a sharp rise on Monday after Toyota (NYSE: TM) revealed it was considering an investment in a possible buyout of the key supplier.
On Monday, Toyota Industries’ shares were untraded, with a backlog of buy orders. The bidding price suggested the stock could hit the daily upper limit of 16,225 yen, marking a 23% increase from the previous Friday’s close of 13,225 yen.
If this happens, it would be Toyota Industries’ biggest single-day jump in over 40 years, according to data from LSEG dating back to early 1984.
On Saturday, Toyota announced in a Tokyo Stock Exchange filing that it was exploring various options, including a partial investment in Toyota Industries.
Bloomberg News reported on Friday that Toyota’s Chairman Akio Toyoda, along with his family, had proposed a potential 6 trillion yen ($42 billion) buyout of Toyota Industries.
In a statement, Toyota Industries confirmed it had received proposals regarding a possible move to go private through a special purpose company but denied that Toyota’s chairman or the Toyota group had made a buyout offer.
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