JIP to Launch $14bn Tender Offer for Toshiba

Toshiba said on Monday a group led by private equity firm Japan Industrial Partners (JIP) would launch a $14bn tender offer on Aug 8th to take the industrial conglomerate private and put it in domestic hands.

The tender offer, which values the electronics-to-power station’s maker at 2 trillion yen ($14 billion), will complete on Sept. 20. It was originally scheduled to start in late July, but was pushed back due to a regulatory delay.

The Toshiba board initially said the 4,620 yen per share offer price was too low to recommend shareholders tender their shares, but later concluded the price was “fair” with no prospects of a higher offer or competing bid and unfavourable economic conditions.

Some activist shareholders, although not satisfied with the price, are tired of years of battles with the company and eager to exit, sources familiar with the matter have said.

Get the week’s top news delivered directly to your inbox – Sign up for our newsletter

Some 20 Japanese companies will take part in the deal. Major contributors include chipmaker Rohm with 300 billion yen and financial services firm Orix with 200 billion yen.

Many of the investors are Toshiba’s longtime business partners who are eager to keep ties with the company after the buyout, the sources said.

 Source: Reuters

Can’t stop reading? Read more