Toyota Motor stock jumps on potential buyout of its supplier at $42 bln valuation

Investing.com-- Shares of Toyota (NYSE:TM) Motor (TYO:7203) jumped on Monday after the automaker revealed it is exploring a potential buyout of its key parts supplier, Toyota Industries (OTC:TYIDF) Corp (TYO:6201).

Toyota Motor Chairman Akio Toyoda has proposed a buyout of Toyota Industries, aiming to strengthen his control over Japan’s largest business empire, Bloomberg reported on Friday, citing people familiar with the matter.

The proposal values Toyota Industries, a maker of textile looms and car parts, at 6 trillion yen ($42 billion), representing a 40% premium over its market capitalization at Friday’s close, Bloomberg reported.

The automaker said in a filing on Saturday that it is exploring various possibilities, including partial investment.

Tokyo-listed Toyota Motor shares jumped 5.4% to 2,836 yen as of 02:45 GMT.

Toyota Industries shares were not traded on Monday because of a surge in buy orders.

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