Toshiba Picks Japan Industrial Partners Led Group As Preferred Bidder

  • Toshiba Corp TOSBF (TOSYY) granted a Japan Industrial Partners Inc led consortium preferred bidder status for a buyout of the iconic Japanese firm.
  • Private equity firm JIP looked to acquire Toshiba in partnership with multiple domestic companies, including Orix Corp IX and Chubu Electric Power CHUEFBloomberg reports.
  • Toshiba considered that a sale to JIP would keep the company as one entity.
  • Other bidders remain interested in the assets.
  • Toshiba sought strategic proposals for its future, including potential buyout bids. It had targeted second-round offers by the end of September.
  • State-backed investment fund Japan Investment Corp is leading a rival group to JIP, with other investors like Bain Capital and MBK Partners in talks to be involved in its bid.
  • JIP will likely have a month to negotiate with Toshiba.
  • Until June, potential buyers were ready to cough up 7,000 yen ($51.41) per share, valuing Toshiba at $22 billion, representing a 27% premium.
  • Toshiba faced an operational crisis since 2015 when it disclosed accounting malpractice.
  • Price Action: TOSYY shares traded at $17.40 in the premarket on the last check Wednesday.
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