Toshiba restructuring Plan Regeneration change: Japan's Local bidding Alliance goes its separate ways

On the evening of September 21, Beijing time, it was reported that Toshiba's restructuring plan changed a few days ago, and a local bidding alliance supported by the Japanese government parted ways due to disagreement.

Toshiba is currently considering a series of restructuring plans, including privatisation. In June, Toshiba said it had received 10 investment proposals, including eight privatisation proposals. While the other two are about capital and business alliances, Toshiba will continue to be listed.

Japanese government-backed investment fund Japan Investment Corporation (Japan Investment Corp,JIC) and Japanese private equity firm Japan Industrial Partners (Japan Industrial Partners,JIP) formed an alliance that stood out in the first round of bidding.

But disagreements between JIP and JIC over Toshiba's restructuring plan led JIC to abandon JIP and work with other overseas investment funds that won the first round of bids, including Bain Capital of the US and CVC of the UK, according to people familiar with the matter today.

At the same time, JIP also contacted more than 10 Japanese companies, including Central Electric Power (Chubu Electric), Orix Corp (Orix) and East China Sea passenger Railway (Central Japan Railway).

In addition, JIP contacted the Japanese Life Insurance Company (Nippon Life Insurance,NFI). A spokesman for NFI confirmed this, but said the company had not made any decision.

Toshiba has been plagued by financial and governance crises since 2015. Toshiba set up a special committee in April to solicit investment proposals after shareholders voted down a management-backed restructuring plan.