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Toyota Housing to take Misawa private ahead of business integration
Posted on Friday, 10 May 2019 13:04
Toyota Housing is buying out the minority shareholders of Misawa Homes as part of a wider decision by Toyota to combine the group’s housing arm with that of Panasonic to support growth within an intensively competitive real estate market. A long-term population decline and a shift from the previous preference for newly constructed housing to one for existing properties are having an impact on the domestic industry, not to mention changes in the requirements of the Japanese government. Furthermore, the concept of home and town are drastically evolving due to advancements in technology and mobility, such as automated driving and Internet of Things applications. In response to the shift in the business environment, Toyota has recognised the necessity of making Misawa into a wholly owned subsidiary that would then be transferred to the proposed joint venture with Panasonic. Considering the domestic housing market is expected to contract irreversibly in the medium- to long-term, the quoted, consolidated subsidiary also sees the need to construct new business models and initiatives to sustain future growth. Toyota Housing already owns 21.97 million shares and intends to acquire the remaining 49.0 per cent not held by the end of 2018 – with a view to delisting the residential construction company on 30th December. Misawa believes the takeover and subsequent integration should provide economies of scale, efficient growth through the acceleration of management strategies and new business models combining real estate and technology. In addition, the group, as part of the Toyota-Panasonic joint venture, will be able to expand overseas in countries where there is significant population growth and increasing demand for urban infrastructure. Misawa noted that “by becoming an unlisted company through the share exchange, it will become possible to flexibly leverage the track record and network that each company has cultivated thus far”. The group added it will also be able to establish “a foothold to enhance the overseas town development business, without needing to worry about independence as a listed company”. © Zephus Ltd