A Japanese consortium led by Japan Industrial Partners (JIP) has reportedly made a purchase offer of more than 14 billion euros to Toshiba, according to information published in the daily Nikkei. Both parties declined to comment.
Failed spin-off and commitment to consider a buy-out
The process of buying out Toshiba, which has suffered a loss in value in recent years, has been underway for almost a year. After the failure of a demerger project, Toshiba agreed last April to seriously consider the possibility of being bought out. The following month, the group announced that it was in preliminary contact with 10 potential buyers or partners.
Interests of potential buyers
Only Bain Capital, a US fund, has publicly expressed interest in Toshiba. However, it was the Japanese fund JIP that finally won the status of “preferred candidate” last fall. JIP has reportedly brought together some 20 Japanese companies for its project, including Orix, Rohm and Chubu Electric Power.
Despite an initial financial hurdle due to the reluctance of Japanese mega-banks to provide the necessary loans, the consortium has now reportedly cleared this hurdle. However, Toshiba’s stock did not benefit from the offer on the Tokyo Stock Exchange, as the offer amount was very close to the market value of the group. Toshiba’s third quarter results will be released next Tuesday.
