Japanese private equity firm JIP bid $15 billion for Toshiba
On the evening of November 7, Beijing time, it is reported that Japanese private equity firm Japan Industrial Partnership (Japan Industrial Partners,JIP) has submitted a formal proposal to buy Toshiba for about 2.2 trillion yen ($15 billion).
The offer is based on Toshiba's current share price. According to the report, the Toshiba Special Committee will decide whether to accept the offer.
Last month, JIP stood out in the first round of bidding and was selected by Toshiba as the "preferred bidder". Subsequently, JIP contacted more than 10 Japanese companies, including Central Electric Power (Chubu Electric), leasing company Orix Corp, Donghai passenger Railway (CJR) and Japan Life Insurance Company (NFI), to form a bidding alliance.
Reported that in this offer of about 2.2 trillion yen, about 1 trillion yen will come from Zhongzhong Electric Power and Orix and other Japanese companies. It is reported that more than 10 companies have expressed their willingness to contribute. In addition, JIP itself will invest 100 billion yen.
The rest will be provided by financial institutions in the form of loans and capital investments, but these creditors will not have the right to vote. But as of today, JIP has not received a letter of loan commitment from financial institutions. In any case, JIP is in talks to complete the financing by the end of November. The precondition, of course, is that Toshiba accepts its proposal.
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. The special committee is made up of seven outside directors, including two activist shareholders, who will discuss whether to recommend the proposal to other shareholders.
