Toyota Motor Corporation (TSE:7203) and two affiliates plan to sell about 10% of components maker DENSO Corporation (TSE:6902) by year-end, a stake likely worth about $4.7 billion, sources familiar with the matter said. The sale of shares in Denso would mark the latest step by the world's top selling automaker to cash in on stakes in group companies as it ramps up production of fully electric vehicles, a capital-intensive endeavour that requires funding for research and development as well as a factory-floor overhaul. Toyota, Toyota Industries Corporation (TSE:6201) and Aisin Corporation (TSE:7259) will sell Denso shares worth a total of about ¥700 billion ($4.7 billion) at current market prices, the two sources said.

Toyota Motor's portion of the sale will represent short of half of the roughly 10%, with Toyota Industries and Aisin making up the remainder, the sources added. Denso, a key Toyota supplier, is the world's second-largest maker of automotive components. Denso also plans to buy back some of its own shares in the open market to offset the potential hit to its share price, according to the sources, who declined to be named because the matter remains confidential.

Toyota Motor, which held some 24.2% of Denso as of the end of September, is expected to remain as the top shareholder.