Sina Technology News Beijing time on the evening of November 7th, according to reports, the Japanese private equity investment company “Japan Industrial Partners” (JIP) has submitted a formal proposal, to be about 2.2 trillion yen ( approximately $15 billion) to acquire Toshiba.
The offer is based on Toshiba’s current share price. Toshiba’s special committee will decide whether to accept the offer, the report said.
JIP emerged from the first round of bidding last month and was selected as a “preferred bidder” by Toshiba. Subsequently, JIP approached more than 10 Japanese companies, including Chubu Electric, leasing company Orix Corp, Tokai Railway (CJR) and Nippon Life Insurance Company (NFI), etc., to form a bidding alliance.
Of the 2.2 trillion yen offer, about 1 trillion yen will come from several Japanese companies including Chubu Electric Power and ORIX, the report said. 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 voting rights. But as of today, JIP has not received loan commitment letters from financial institutions. Regardless, JIP is in talks to close the financing by the end of November. Of course, the precondition is that Toshiba accepts its proposal.
Toshiba has been plagued by financial and governance crises since 2015. Toshiba formed a special committee in April to solicit outside investment proposals after shareholders voted down a management-backed restructuring plan. The special committee, made up of seven outside directors, including two activist shareholders, will discuss whether to recommend the proposal to other shareholders.
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