On Thursday, March 23, Toshiba announced that its board voted to accept a two trillion yen ($15.3 billion) tender offer from Japan Industrial Partners (JIP). Should the bid succeed, the company will go private, according to an article in Nikkei Asia. The Wall Street Journal has described the bid as a “low-ball bid” in an article published on March 23 and updated on March 26.
Nikkei Asia reports that the tender offer of 4,620 yen per share requires at least two-thirds of outstanding shares to succeed. If that happens, Toshiba will be delisted from the Tokyo Stock exchange.
In addition to JIP, Nikkei Asia reports that 17 Japanese companies, including financial services group Orix, chipmaker Rohm, and Chubu Electric Power, and six domestic financial institutions, along with foreign investors, will hold stakes in the entity to be established for the acquisition.
This is an ongoing saga that stretches back to April 2021, when Toshiba received a buyout offer from the private equity company CVC Capital Partners.
According to Toshiba, a single owner will improve the company’s decision-making and its corporate value. You can read the complete release about the offer issued by Toshiba here. The proposal must still undergo regulatory reviews in several countries, including the U.S., a process that will likely take several months. If the buyout does happen, it is not expected to impact Toshiba America Business Solutions (TABS).
The Cannata Report will continue to closely monitor this story and present additional information as it becomes available.
Further Reading
A March 26 article in Japan Times expressed skepticism about the company’s future.
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