The world's top-selling automaker will take its supplier private through a complex 4.7 trillion Japanese Yen ($33 billion) deal, offering 16 300 Yen ($113) a share for Toyota Industries. That price was well below the closing price of 18 400 Yen ($127) on Tuesday, before the deal was announced. Shares of Toyota Industries were down 12.3% in morning trade in Tokyo at 16 135 Yen ($112).

The offer "undermines" minority shareholders in Toyota Industries, said analyst Arun George. It "likely undervalues the significant real-estate holdings," he said in a comment published on the SmartKarma platform. Media reports had indicated the tender offer would be around $42 billion, which would represent a substantial premium to the actual offer.

Going private will allow Toyota Industries to take a longer-term business perspective, the companies said on Tuesday. Japanese conglomerates are under increasing pressure to unwind stakes in each other as part of a government push for better governance.

--Reuters--