Harmonic Drive Systems, a Japanese maker of speed reducers, confirmed that Toyota Motors is set to sell its entire share in the company. Following last week’s announcement that Toyota would divest a stake in supplier Denso, this latest development has spurred hopes that Toyota will continue to sell its shares in affiliates and suppliers. The world’s top-selling automaker announced back in July that it would sell some of its holdings in telecom giant KDDI to invest more in its electric vehicle division.
In a regulatory filing, Harmonic Drive Systems stipulated that Toyota would sell 4,379,400 shares in the company, however, no price has been specified. According to Wednesday’s closing price of 4,135 yen per share, Toyota’s stake in the precision control equipment maker would be worth 18.1 billion yen ($123 million).
As a means of limiting the impact of Toyota’s sale on its shareholders, Harmonic Drive Systems confirmed that it would buy back 700,000 of its shares. This accounts for about 0.73% of its outstanding stock.