Toyota Motor Corporation has amended its May 20 notice on the planned transfer of its OneStream logistics-efficiency system business, and the key change is not the calendar. The company still expects the absorption-type split to take effect on June 29. What changes is the capital structure waiting on the other side: Toyota now says OneStream Co., Ltd., the successor company, will have capital of ¥150 million when the split takes effect, and that amount could rise again if a newly approved Class A preferred-share issue is paid in afterwards.
The underlying transaction is otherwise unchanged. Toyota is transferring the development and operation of the OneStream logistics-efficiency system, related customer services and associated operations to OneStream Co., Ltd. Toyota also says the split does not change the names, locations, representatives, business lines or fiscal year-end of the two companies, apart from OneStream's capital.
What prompted the amendment was a May 28 shareholder resolution at OneStream to issue new Class A preferred shares through a third-party allotment, which Toyota said is intended to support further growth of the logistics-efficiency system business. The notice lays out a two-step sequence. First, on June 29, when the split is due to become effective, OneStream's capital is expected to be reset to ¥150 million. Second, if payment for the preferred shares is made during the June 30 to July 31 payment period, OneStream's capital is expected to increase further.
For business readers, that makes this less a timetable revision than a clarification of the successor company's balance sheet. It is corporate plumbing, but important plumbing: the operating transfer still happens on the original schedule, while a financing step can follow almost immediately after. Toyota's amendment does not disclose the size of the preferred-share issue, who will subscribe or what the final post-payment capital figure would be, so the only disclosed post-split number for now is the ¥150 million capital level slated for June 29. The company also corrected one reference point in the original notice, changing the date used for the successor company's overview to April 1 from March 31.