Japanese automaker Toyota Motor Corp (TM  ) and two of its affiliates are reportedly set to unload about 10% of their shares in automotive components manufacturer Denso by the end of the year.

What Happened: The proposed sale, estimated to be worth around $4.7 billion, aligns with Toyota's plan to liquidate stakes in group companies, Reuters reported, citing sources familiar with the matter.

As per the report, Toyota, Toyota Industries, and Aisin intend to sell Denso shares amounting to about 700 billion yen ($4.7 billion) at existing market prices. Toyota Motor's share in the sale will be less than half of the approximately 10%, with the balance coming from Toyota Industries and Aisin.

Meanwhile, Denso, the world's second-largest automotive components manufacturer, reportedly intends to buy back some of its shares from the open market to counter potential impacts on its stock price.

Why It Matters: Domestic investors are likely to buy the shares for a price that is yet to be decided. However, the report noted that even after the sale, Toyota will continue to be the largest shareholder in Denso. As of the end of September, Toyota held 24.2% of Denso.

The cash from the sale will be used to ramp up EV production, it added.

Toyota did not immediately respond to Benzinga's request for comment.