According to people familiar with the matter, a consortium led by Japan Industrial Partners Inc is considering Toshiba Corp’s valuation of about 2.4 trillion yen ($16.1 billion), which could be Asia’s biggest purchase this year.
The JIP-led conglomerate, which is the preferred bidder to take the Japanese industrial conglomerate private, plans to provide 1 trillion yen in cash, while a total of 1.4 trillion yen funding from banks as well as 200 billion yen in the works. credit line requested. Rajdhani, said those who asked not to be identified in the case are private.
The people said Toshiba, in its regular meeting with banks, including Sumitomo Mitsui Banking Corp, on October 20 informed them that JIP was valuing the company at about 2.4 trillion yen and asked them to provide financial assistance.
Shares of Toshiba are up about 17% this year, giving the group a market value of about $15.7 billion. The 2.4 trillion yen bid would be valued at around 5,541 yen per share, according to Bloomberg calculations, the same as Toshiba’s closing price of 5,391 per share in Tokyo on Monday.
People said JIP is yet to finalize equity commitments from its partners, while banks are cautious about binding commitments. Bloomberg News previously reported that both the consortium led by Zip and a rival group led by state-backed investment fund Japan Investment Corp would find it difficult to meet the November 7 deadline for completing commitment letters.
People said that the discussions are still going on and there is no certainty that the talks will lead to any transaction. He added that Toshiba may still decide to pursue some asset sale rather than an outright sale of the business.
Spokesmen for JIP and SMBC declined to comment. A Toshiba spokesperson said in response to a question from Bloomberg News that, as a general rule, they cannot respond to information about candidates, including co-investors, because it could undermine a fair process.
Bloomberg News reported that JIP is in talks to form partnerships with domestic companies including Oryx Corp and Chubu Electric Power Co., as well as global investment firms such as Baring Private Equity Asia and CVC Capital Partners. That alliance has put forward a proposal that would retain Toshiba’s existing business structure.
Investors including Bain Capital and MBK Partners are discussing joining JIC’s rival bidding group, people familiar with the matter said.
This story has been published without modification in text from a wire agency feed.
catch all corporate news And updates on Live Mint. download mint news app to receive daily market update & Live business News,