China's Huawei to Host Product Launch Event on Sept 25

FILE PHOTO: Pricing details of Huawei's Mate 60 Pro smartphones are seen on smartphones displayed at a Huawei store in Shanghai, China September 8, 2023. REUTERS/Aly Song/File Photo
FILE PHOTO: Pricing details of Huawei's Mate 60 Pro smartphones are seen on smartphones displayed at a Huawei store in Shanghai, China September 8, 2023. REUTERS/Aly Song/File Photo
TT
20

China's Huawei to Host Product Launch Event on Sept 25

FILE PHOTO: Pricing details of Huawei's Mate 60 Pro smartphones are seen on smartphones displayed at a Huawei store in Shanghai, China September 8, 2023. REUTERS/Aly Song/File Photo
FILE PHOTO: Pricing details of Huawei's Mate 60 Pro smartphones are seen on smartphones displayed at a Huawei store in Shanghai, China September 8, 2023. REUTERS/Aly Song/File Photo

China's Huawei Technologies said on Thursday it will hold a media event to discuss new products on Sept. 25, fanning expectations that details about recently released smartphones will be revealed.

Its Mate 60 series is in the spotlight - both for the use of a China-made advanced chip and because the series likely marks the first major attempt by Huawei's smartphone business to come back from crippling US sanctions.

Reuters said that Huawei did not elaborate on the new products that will be discussed but domestic business daily Yicai reported that information about its latest phones will be disclosed.

Huawei started selling its latest high-end smartphones Mate 60 and Mate 60 Pro at the end of last month and last week it started presales for its Mate 60 Pro+ smartphone alongside a new foldable phone Mate X5.

The series' launch was unusual in that Huawei did not carry out any pre-marketing or organize a glitzy event. Even so, the phones have caused a stir, with the first sales coinciding with a trip to China by US Commerce Secretary Gina Raimondo and because the Pro version was found to be using a 5G-capable chip made by a Chinese company.

How Huawei's phones will fare against Apple at a time of heightened US-Sino tensions will be of much interest to investors and China watchers.

The launch of Apple's iPhone 15 series this week has drawn mixed reactions in China - the company's third-largest market - with many online users liking its faster chip and improved gaming capabilities while others preferred Huawei's new smartphone.

Further denting Apple's sheen in China, the government has expanded curbs on the use of iPhones by state employees, with some told not to use them at work.

The state-backed Securities Times this week reported that Huawei had raised its Mate 60 series second-half shipment target by 20% due to better-than-expected sales.

Huawei, once the world's largest smartphone maker, saw that business decimated after the US started restricting tech exports to the company in 2019.
The US and other Western governments have labelled Huawei a security risk, a charge the company denies. Since then, Huawei has only sold limited batches of 5G models using stockpiled chips.



Toyota Industries Sinks after Parent's Takeover Bid Misses Expectations

A Toyota Logo is seen at a Toyota dealership in Zaventem, Belgium, November 25, 2022. REUTERS/Johanna Geron/File Photo
A Toyota Logo is seen at a Toyota dealership in Zaventem, Belgium, November 25, 2022. REUTERS/Johanna Geron/File Photo
TT
20

Toyota Industries Sinks after Parent's Takeover Bid Misses Expectations

A Toyota Logo is seen at a Toyota dealership in Zaventem, Belgium, November 25, 2022. REUTERS/Johanna Geron/File Photo
A Toyota Logo is seen at a Toyota dealership in Zaventem, Belgium, November 25, 2022. REUTERS/Johanna Geron/File Photo

Investors gave a thumbs-down to Toyota Motor's $33 billion take-private offer for Toyota Industries on Wednesday, highlighting concerns minority shareholders would be short-changed in a landmark restructuring for Japan Inc.

Shares of Toyota Industries, a key Toyota Group company, fell 12% in Tokyo trade a day after the world's top-selling automaker unveiled plans to take the subsidiary private. The complex 4.7 trillion yen ($33 billion) transaction includes an offer price of 16,300 yen a share for Toyota Industries.

While that represents a 23% premium to the price before word of the deal broke in April, it is well below the 18,400 yen price before the offer was formally announced. Shares closed at 16,205 yen on Wednesday.

"To be clear, we welcome the attempt to clear up the parent-subsidiary governance issue. We don't like the price," said David Mitchinson, founding partner and chief investment officer of Zennor Asset Management, which owns Toyota Industries shares, Reuters reported.

When asked if Zennor would tender its shares, he said: "We will have to see how this develops as there seems strong opposition from many shareholders".

The deal will see a number of Toyota Group companies unwind cross-shareholdings, something Japanese regulators and the Tokyo Stock Exchange have long urged for better governance.

Toyota Industries has been one of Japan's most prominent examples of so-called "parent-child listings", where both a parent company and its subsidiary are listed. Governance experts say such cases are inherently unfair to minority shareholders and a drag on corporate value.

Still, the transaction comes up short in terms of corporate governance, as it both undervalues Toyota Industries' substantial real estate holdings and strengthens the founding Toyoda family's control over the broader group, market participants said.

"There's huge hidden asset value in the land and other holdings at Toyota Industries. And the price should have been much higher," Nicholas Benes, a governance expert and the CEO of the Board Training Institute of Japan, told a briefing on Wednesday.

The deal was a "prime example" of a squeeze-out of minority shareholders at an unfair price by founders and management, he said.

In a statement, Toyota Motor said the interests of Toyota Industries' minority shareholders were being considered. "Taking into account shareholder returns and the tax benefits for Toyota Industries, we have adopted a share buyback scheme" through a tender offer, it said.

It said the deal was part of a broader realignment of capital structures within the Toyota Group as it moved toward becoming a mobility company.

A new holding company will be set up for the deal. Group real estate company Toyota Fudosan will invest 180 billion yen, while Akio Toyoda, Toyota Motor's chairman, will invest 1 billion yen. Toyota Motor will invest 700 billion yen in non-voting preferred shares.

Media reports had indicated the tender offer would be around $42 billion, a substantial premium to the actual offer.

Toyota Motor and group companies Aisin, Denso and Toyota Tsusho will all sell their shares in Toyota Industries and acquire their own shares now held by it.

Toyota owned about 24% of Toyota Industries as of September last year, while Toyota Industries held around 9% of the automaker and more than 5% of Denso.

Toyota Industries, formerly Toyoda Automatic Loom Works, was founded in 1926 to make automatic looms. An automotive division within the company was set up and later spun off as Toyota Motor.