In 2014 BMW embarked on a new approach to spatial functionality with the launch of the BMW 2-Series Active Tourer. It offered generous amounts of space within a compact exterior, together with excellent versatility and high levels of driver engagement. The first ever Sports Activity Tourer (SAT)…Read more »
Toyota defends its share sale
The Japanese car major Toyota reassured critics about its controversial share sale decision. The company tried to discipline its shareholders’ opposition. The company is going ahead with sale of 50 million new shares, the decision which has been approved by its 75 percent shareholders already. The largest car manufacturer on the planet recently informed about its move that will affect share which can’t be publicly traded.
The sale is scheduled in July and will be only open to Japan based investors. These new Model AA stocks have huge advantages over others. The share will have higher price, 26 to 30 percent more than common shares of Toyota, according to experts. The investor will have voting right too. Toyota’s stock was down by 0.68 percent in Tokyo with value of $68 dollars each. The five year holding period will end up with 0.5 percent to 2.5 percent dividends. The investors will have a choice to convert these special shares into common shares after 5 year or Toyota will buy back the same. Long-term investors are being targeted due to this move. Experts are pointing out that this violates Japan’s new code on corporate governance, which is in force since this month.
The government hopes that new age of transparency will emerge in corporate Japan due to new code. The shareholders will have more power due to the new rule. The Toyota explained that the new rules are for the benefit of company and shareholders both. The long term share holder can become an active partner in company due to the move. Government hopes to encourage mid and long term investments.