GT Capital Holdings, Inc. is investing 22.2 billion Japanese yen, or around $200 million, in Japanese auto manufacturer Toyota Motor Corp., noting that it is “timely” to invest in the world’s fifth largest firm.
In a disclosure to the stock exchange on Thursday, June 28, the holding firm of tycoon George S.K. Ty said it will be buying shares in TMC from the Tokyo Stock Exchange based on prevailing rates on the date of purchase.
The listed conglomerate took out a yen-denominated loan to fund the purchase of shares, which is now ongoing.
GT Capital Head of Investor Relations Jose B. Crisol, Jr. said the company took into account the opportunities and positive outlook for Toyota when deciding to invest in the automotive manufacturer.
“It’s opportunistic because Toyota Japan recently announced the share buyback program so we feel it’s a timely opportunity to take a position in that because numbers show that Toyota Japan is a very good investment in terms of share price valuation, P/E (price-to-earnings) and price-to-book are all very attractive,” Mr. Crisol said in a phone interview on Thursday.
He noted that there is a consensus among key research reports that there will be some price appreciation on the stock, in addition to the amount of dividend yields.
Toyota is cited as the fifth largest company in the world in terms of revenues. In its fiscal year ending March 2018, the firm reported that it sold 8.96 million vehicles in the world, translating to net revenues of 29.38 trillion Japanese Yen. — Arra B. Francia