Yamaha Corp no longer major shareholder of Yamaha Motor after selling 8 million worth of shares

On November 29, 2017, Yamaha Corporation announced that they were selling eight million worth of shares, representing 2.29% of their voting rights, in Yamaha Motor Co., Ltd. to various undisclosed securities companies in block trades.

Yamaha Corporation

Yamaha Motor Company Ltd

Prior to the sale, Yamaha Corp. had 12.22% ownership in Yamaha Motor. But as of June 30 from the Quality Report of Yamaha Motor, they now only have 9.93% voting rights. The deal is scheduled to close on December 4.

In their news release, Yamaha Corp. mentioned, “The Company will maintain cooperative relationships with Yamaha Motor. However, on the other hand, as a result of consideration from various points of view, including capital efficiency, the Company has decided to reduce its holdings of Yamaha Motor shares to a level where the Company will not be included among major shareholders (defined as shareholders with 10% or more of voting rights).”

Yamaha Corp., with a market capitalization of $86 million as of September 30, is one of Japan’s biggest conglomerates specializing in manufacturing musical instruments and power sports equipment although it offers a wide range of products as well.

Meanwhile, Yamaha Motor Co. is valued at about $7 billion, an automotive powerhouse in Japan that offers motorcycles, commuter vehicles, scooters, boats, marine engines, snowmobiles, small tractors, electrically power assisted bicycles, and other assortments of products.

Expected to close in December 4, this deal will result in a 2.29% drop in Yamaha Corp.’s ownership position at Yamaha Motor Co. from their previous 12.22%, seeing them at 9.93%, no longer deemed as a “major shareholder” in Yamaha Motor.

However, Yamaha Corp. released a statement that said they will “remain cooperative relationships with Yamaha Motor”.

After news broke out about Yamaha Corp.’s selling of shares, Yamaha Motor Co. gained 0.3% which is equivalent to about ¥2, 995.