Toshiba’s preferred bidder finalizing $10.6 bln financing for buyout -sources

Author of the article: Reuters Makiko Yamazaki and Ritsuko Shimizu Published Dec 22, 2022  •  2 minute read Join the conversation TOKYO — The preferred bidder for Toshiba Corp is finalizing 1.4 trillion yen ($10.6 billion) in financing from Japanese lenders to fund its acquisition, according to two sources, a deal that would see one…
Toshiba’s preferred bidder finalizing $10.6 bln financing for buyout -sources

Author of the article:

Reuters

Makiko Yamazaki and Ritsuko Shimizu

Published Dec 22, 2022  •  2 minute read

Join the conversation

TOKYO — The preferred bidder for Toshiba Corp is finalizing 1.4 trillion yen ($10.6 billion) in financing from Japanese lenders to fund its acquisition, according to two sources, a deal that would see one of the country’s best known conglomerates taken private.

Private equity firm Japan Industrial Partners (JIP) is expected to secure commitments from banks by the end of this month, said the sources with knowledge of the matter who declined to be identified because the talks are not public.

Financial Post Top Stories

Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.

By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails or any newsletter. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300

The 1.4 trillion yen includes 200 billion yen in working capital, they said.

The main banking arms of Mizuho Financial Group, Sumitomo Mitsui Financial Group and Sumitomo Mitsui Trust Holdings Inc are together expected to lend more than 1 trillion yen, three sources said.

The core bank unit of Japan’s biggest financial group, Mitsubishi UFJ Financial Group and Aozora Bank Ltd are also participating, they added.

Spokespeople for all five banks declined to comment. JIP was not immediately available for comment.

Toshiba, whose businesses span nuclear power, defense technology and which owns 40.6% of memory chip maker Kioxia Holdings, declined to comment. It said in a letter to shareholders last week it was aiming to reach a conclusion with potential partners as soon as possible.

The deal is expected to cost at least 2.2 trillion yen, with financial services group Orix Corp, chipmaker Rohm Co Ltd and Japan Post Bank among the Japanese companies likely to join JIP in its bid, Reuters has previously reported.

The final cost could potentially change due to market conditions, two sources said.

Toshiba named a JIP-led group as its preferred bidder in October for the buyout process. The private equity firm was then asked by Toshiba to provide commitment letters from banks by Nov.7, something it was unable to secure.

But by the start of this month JIP had moved closer to winning the backing of banks after it proposed concrete restructuring steps, sources have previously said.

Once the bid is finalized, investors will be watching closely to see how a Toshiba special committee and its board evaluate JIP’s plan to overhaul the troubled conglomerate. ($1 = 132.7200 yen) (Reporting by Makiko Yamazaki and Ritsuko Shimizu; Writing by David Dolan; Editing by Edwina Gibbs)

Read More

Total
0
Shares
Leave a Reply

Your email address will not be published.

Related Posts
Vietnam’s Vinfast IPO may be pushed back to 2023 on market uncertainty -exec
Read More

Vietnam’s Vinfast IPO may be pushed back to 2023 on market uncertainty -exec

This advertisement has not loaded yet, but your article continues below. Author of the article: Article content HANOI — The chairman of Vietnam’s Vingroup conglomerate said on Wednesday that an initial public offering (IPO) for the company’s auto unit, VinFast, may be delayed until next year due to market uncertainty. The IPO is currently slated…
Germany to enter Phase 2 of emergency gas plan, says source
Read More

Germany to enter Phase 2 of emergency gas plan, says source

This advertisement has not loaded yet, but your article continues below. Author of the article: Article content BERLIN — Germany will enter Phase 2 of its three-stage emergency gas plan on Thursday, a source close to the matter told Reuters. The alarm stage, planned for when the government sees a high risk of long-term supply…
Australia forecasts high inflation for another 2 years
Read More

Australia forecasts high inflation for another 2 years

Author of the article: The Associated Press Rod Mcguirk Australia's treasurer Jim Chalmers delivers a budget update at Parliament House in Canberra, Thursday, July 28, 2022. Australia's runaway inflation is forecast to remain too high for the next two years and economic growth will slow without falling into recession, the government's treasurer said on Thursday.…
Russia build-up triggering Ukraine capital outflow, Czech minister says
Read More

Russia build-up triggering Ukraine capital outflow, Czech minister says

Author of the article: Reuters Jan Lopatka and Robert Muller PRAGUE — Ukraine’s economy is already feeling the impact of Russia’s military build-up through capital flight and will require stabilization from abroad, Czech Foreign Minister Jan Lipavsky said on Wednesday. Lipavsky, speaking after a two-day visit to Ukraine which included a trip to the frontline…