Archion Share Sale by Toyota and Daimler Truck to Boost Tokyo Stock Exchange Float

On July 6, Archion, the holding company created through the business integration of Hino Motors and Mitsubishi Fuso Truck and Bus, announced that its shareholders, Toyota Motor Corporation and Daimler Truck, had approved the sale of up to approximately 900 million company shares. The decision was authorized during an Archion board meeting held on the same day. The planned transaction is intended to align the company's ownership structure with previously announced objectives following the completion of the business integration.

Under the definitive business integration agreement between Hino Motors and Mitsubishi Fuso Truck and Bus, Toyota Motor Corporation and Daimler Truck committed to reducing their respective ownership interests in Archion over a defined period. The long-term target is for each company to hold approximately 25% of Archion's total issued shares. Based on the planned transaction, the voting-right ratios are expected to become 19.9% for Toyota Motor Corporation and 26.7% for Daimler Truck, compared with their existing shareholding ratio of 41.4% each before the offering.

Archion Share Offering Details

The planned transaction consists of a combined offering of 787,855,700 common shares, including 425,442,100 shares allocated for the domestic market and 362,413,600 shares designated for overseas investors. In addition, an over-allotment option covering 118,178,300 shares may be exercised depending on market demand, bringing the total potential offering to as many as 906,034,000 shares during July.

Expected Impact on Market Listing

Following completion of the share offering, Archion expects its tradable share ratio to exceed 35%, satisfying the minimum requirement for maintaining a listing on the Prime Market of the Japan Tokyo Stock Exchange. Increasing the proportion of publicly tradable shares is expected to strengthen market liquidity while ensuring continued compliance with listing standards established by the exchange.

Estimated Transaction Value

Using the closing market price recorded on July 4 as the reference, the total estimated value of the proposed share sale exceeds JPY 200 billion. The transaction represents one of the largest equity offerings associated with the post-integration ownership restructuring of Archion while supporting the previously disclosed capital strategy agreed by Toyota Motor Corporation and Daimler Truck.

Frequently Asked Questions

Why are Toyota Motor Corporation and Daimler Truck selling Archion shares?
Toyota Motor Corporation and Daimler Truck are reducing their holdings in Archion to achieve the ownership structure outlined in the definitive business integration agreement involving Hino Motors and Mitsubishi Fuso Truck and Bus. The transaction aims to lower their equity stakes toward approximately 25% over time while increasing the company's public float. This also helps Archion meet the Tokyo Stock Exchange Prime Market requirement of maintaining a tradable share ratio above 35% without changing the overall strategic framework of the business integration.