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Toyota Shareholders Approve Unlisted Stock Plan
Toyota Motor Corp. shareholders have okayed a new type of stock intended to attract more long-term investors.
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Toyota Motor Corp. shareholders have okayed a new type of stock intended to attract more long-term investors.
The unlisted shares must be held for five years before they can be converted to common stock or sold back to the company at the original purchase price.
Toyota plans to issue 150 million of the so-called "Model AA" shares, named after the company's first car. The stock will pay a fixed dividend of 0.5% the first year, increasing by half a point in each of the following four years.
Analysts note the offering assumes Toyota will maintain a strong balance sheet. They say the plan should prove popular in Japan, where most of the financial assets held by individuals is in the form of cash deposits that pay virtually zero interest.
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