KDDI: Toyota looks to sell KDDI shares worth $1.8 billion

Toyota Motor Corporation intends to sell a roughly $1.80 billion stake in KDDI Corporation as part of a share buy-back deal.  Reuters reports that the Japanese automaker wants to raise funds to accelerate vehicle electrification. Toyota's stake in the Japanese telco would decrease from 14.68 percent to 11.71 percent if a sale were to occur.

Toyota announced last week that KDDI would repurchase shares between July 31 and August 28 at $27 per share, 8.7 percent less than KDDI's Friday closing price of $29.8. Toyota's decision to sell a portion of its KDDI stake coincides with its intention to invest significantly in its battery electric vehicle (BEV) lineup.

Toyota is KDDI's third-largest shareholder, trailing only The Master Trust Bank of Japan and electronics company Kyocera. The partnership between the two companies dates back to the 1980s. Back in 2020, Toyota pledged to invest $366,7 million in KDDI to strengthen their 'connected car' development partnership.