- A consortium led by Japan Industrial Partners Inc considered an acquisition of Toshiba Corp TOSBF TOSYY at a valuation of approximately 2.4 trillion yen ($16.1 billion).
- The preferred bidder plans to provide 1 trillion yen in cash while soliciting a total of 1.4 trillion yen in financing from banks along with a committed 200 billion yen of working capital line of credit. Bloomberg reports.
- Also read: Toshiba shares gain on reports of a potential $19 billion takeover bid
- In his regular meetings with banks, including Sumitomo Mitsui Banking Corp. on October 20, Toshiba informed them that JIP values the company at around 2.4 trillion yen and sought financial support.
- Toshiba’s shares are up about 17% this year, giving the conglomerate a market value of about $15.7 billion.
- The report said a 2.4 trillion yen offering would be worth about 5,541 yen per share.
- The JIP-led consortium and a rival group led by state-backed investment fund Japan Investment Corp will struggle to meet a Nov. 7 deadline to issue commitment statements.
- Toshiba could still consider certain asset sales instead of a full business sale.
- The report added that JIP is collaborating with domestic companies including Orix Corp. and Chubu Electric Power Co, and global investment firms such as Baring Private Equity Asia and CVC Capital Partners.
- Investors including Bain Capital and MBK Partners have been discussing a stake in JIC’s competing bid group.
- Price promotion: TOSYY shares traded 0.41% higher to $18.29 on the latest check Monday.
- Photo via company
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