Toshiba Accepts $15 Bn Takeover Bid: Reports

Japanese multinational Toshiba on Thursday accepted an offer of USD 15 billion from a consortium leby by Japan Industrial Partners (JIP), according to Japanese media outlets.

The troubled conglomerate was one of the leading Japanese technology companies but it has been embroiled in years of turmoil. Recently, it has faced financial issues, resignations and scandals.

A consortium of about 20 Japanese companies have reportedly participated in the buyout which would take the company private, according to reports from Nikkei and other media.

Yet to receive approvals under global laws the deal has been priced at two trillion yen or USD 15 billion. But it is unclear if the activist funds, which own about a quarter of the company, would approve the takeover bid.

According to a Reuters report, Toshiba said in a filing that the board would not go as far as recommending shareholders to tender their shares, because the offer price is not high enough to give recommendations. The price was lowered a few times from an initial offer of up to 5,500 yen per share, according to the filing.

Toshiba added that the JIP bid was the only “complete proposal” it had received and would allow investors a chance to exit their investments.

Toshiba had begun accepting proposals and bids for restructuring from investors and sponsors since a while. It had reportedly narrowed down four bidders in July which was also a consortium led by JIP and included PE firms including Bain Capital, CVC Capital Partners and Brookfield Asset Management.