Investors have long pressured Japanese companies to sell-off cross-shareholdings and put their capital to better use. Firms have been gradually selling down their stakes, thanks in part to a governance push by the Tokyo Stock Exchange and the government.
Toyota and some other of its group companies last year sold around 8 per cent of Denso, a move that was seen as a critical first step by the sprawling Toyota Group and heightening expectation of more sales to come.* Denso President Shinnosuke Hayashi told a briefing the supplier of auto components will continue selling its cross-shareholdings, with the intent to sell all of them, after holding talks with the companies involved.
* Denso, which doesn't disclose the size of its cross-shareholdings, in March announced plans to sell all of its 9.1 per cent stake in Toyota Industries."Basically, we are not going to hold a portion of the shares, but rather we are moving towards selling all of our shares," Executive Vice President Yasushi Matsui told the briefing.
* Hayashi said the elimination of cross-shareholdings was important for increasing the competitiveness of the entire industry.* It forecast an 88 per cent profit increase for the year to March, for 714 billion yen .
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