Toshiba Bags $16B Valuation In Takeover Bid

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  • A consortium led by Japan Industrial Partners Inc explored a takeover of Toshiba Corp TOSBF TOSYY at a valuation of about 2.4 trillion yen ($16.1 billion).
  • The preferred bidder plans to provide 1 trillion yen in cash while seeking financing totaling 1.4 trillion yen from banks along with a committed line of credit of 200 billion yen in working capital, Bloomberg reports.
  • Also Read: Toshiba Shares Gain On Reports Of Potential $19B Takeover Bid
  • In its regular meeting with banks, including Sumitomo Mitsui Banking Corp. on October 20, Toshiba informed them that JIP is valuating the company at around 2.4 trillion yen and sought financing support.
  • Shares of Toshiba have risen about 17% this year, giving the conglomerate a market value of approximately $15.7 billion. 
  • The report specified that a bid at 2.4 trillion yen would be worth about 5,541 yen per share.
  • The consortium led by JIP and a rival group led by state-backed investment fund Japan Investment Corp will find it hard to meet a November 7 deadline to line up commitment letters.
  • Toshiba could still explore certain asset sales instead of a complete business sale.
  • The report added that JIP explored collaboration 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 discussed involvement in JIC’s rival bid group.
  • Price Action: TOSYY shares traded higher by 0.41% at $18.29 on the last check Monday.
  • Photo Via Company
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