JIP may take over Toshiba for $16.1 billion
As per news source, a consortium led by Japan Industrial Partners Inc. may take over Toshiba Corp. at a valuation of about 2.4 trillion yen ($16.1 billion), said people familiar with the matter. It could be Asia’s biggest buyout this year.
The JIP-led group plans to provide a cash of 1 trillion yen, while seeking financing of 1.4 trillion yen from banks along with a committed line of credit of 200 billion yen in working capital, said the source.
Toshiba, in its regular meeting with banks including Sumitomo Mitsui Banking Corp. on Oct. 20, informed them that JIP is valuating the company at around 2.4 trillion yen and asked them to give financing support, the people said.
JIP has yet to finalize the equity commitments from its partners, while banks remain cautious about making binding commitments, the people said. Both 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 Nov. 7 deadline to line up commitment letters, as per a previous report.
The sources also said that considerations are going on and there is no certainty that talks will lead to any transaction. Further adding, they said that Toshiba may also decide to explore certain asset sales instead of a full sale of the business.
JIP is in talks to form a partnership with domestic companies including Orix Corp. and Chubu Electric Power Co. as well as global investment firms such as Baring Private Equity Asia and CVC Capital Partners, as per news report. That coalition has made a proposal that would keep Toshiba’s current business structure intact.
Investors including Bain Capital and MBK Partners have discussed being involved in JIC’s rival bid group, people familiar with the matter have said.
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