Latest Tokyo Brief coverage on ARCHION Corporation, tracking filings, financial news, and market signals from Japan.
TSE:543A
ARCHION, the parent of Hino Motors and Mitsubishi Fuso Truck and Bus, signed a ¥250bn syndicated facility led by Sumitomo Mitsui Banking Corporation and decided to borrow ¥200bn of it, mostly to refinance the two truck makers' existing short-term debt, with capital-floor covenants running through 2028.
A greenshoe exercise on August 14 completed a scripted reshuffle: Toyota's and Daimler Truck's combined hold in the merged Hino-Mitsubishi Fuso holding company fell from 54.29% to an even 50%, split exactly at 25% apiece.
A greenshoe sale worth 59,089,200 shares brought Daimler Truck's stake in ARCHION down to the 25% ceiling it and Toyota agreed to hit after last year's truck merger, with voting rights still split unevenly at 26.7% versus 19.9%.
Daimler Truck AG and Toyota Motor Corporation are selling down a combined 787.9 million ARCHION shares at an indicative ¥250 to ¥300 each, a stake sale worth up to roughly ¥236bn before an over-allotment option pushes it higher.
Toyota Motor and Daimler Truck AG are selling down about 788 million ARCHION shares at a preliminary ¥250 to ¥300 each, split almost evenly between Japan and overseas buyers, with the final price capped at 95% of the stock's close on the pricing date set for sometime between July 22 and 27.
The catch: Toyota and Daimler Truck are both cutting their ARCHION stakes to 25%, but Toyota's voting rights fall further, to 19.9%, ending its status as an affiliated company, while Daimler Truck keeps 26.7% of the vote. Pricing on the up-to-906-million-share sale is set between July 22 and July 27.