Toyota plans $19bn share unwind in landmark governance reform move – Reuters

Toyota is preparing to unwind approximately ¥3 trillion (around $19 billion) in shares as part of a significant governance reform initiative. This plan involves major financial institutions selling shares they hold due to longstanding reciprocal investment arrangements. The commitment to reform reflects growing pressure on Japanese corporations to improve capital efficiency. The timing for this transaction could be as early as 2026, but remains fluid and contingent on shareholder participation and market conditions. Toyota may utilize share buybacks to facilitate this unwind or consider a secondary sale to outside investors. The potential unwind, if executed, represents a pivotal shift in Japan's corporate governance landscape, as regulators have intensified scrutiny on cross-shareholdings, which are often criticized for reducing shareholder accountability.