Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Toshiba investor Oasis unimpressed by CVC's $20 billion offer

Published 04/12/2021, 11:08 PM
Updated 04/13/2021, 07:21 AM
© Reuters. The logo of Toshiba Corp. is seen at the company's facility in Kawasaki, Japan

By Junko Fujita

TOKYO (Reuters) -Hong Kong-based activist fund Oasis Management belies CVC Capital's $20 billion proposal to take Toshiba (OTC:TOSYY) Corp private is "far below fair value" and has urged the Japanese conglomerate to seek other offers.

An investor in Toshiba since 2016, the fund said that a price of more than 6,200 yen ($56.54) per share for Toshiba would be appropriate, rather than the reported offer of 5,000 yen per share.

While Oasis understands that the bid was unsolicited and should be given due consideration for the benefit of all shareholders, the activist investor wrote to Toshiba's board chairman, Osamu Nagayama, to voice its concerns.

"If the company is open to bids, we believe there would be other bidders interested in acquiring Toshiba," Oasis said in the letter seen by Reuters on Tuesday.

U.S. hedge fund Farallon Capital Management has also asked Toshiba to seek multiple offers, but Oasis is the first to present what it considers a fair price.

Toshiba shares have been hovering well below CVC's likely offer price after hitting a four-year high last week, with the stock closing at 4,595 yen on Tuesday.

Oasis does not disclose the size of its stake while Farallon is Toshiba's third-largest shareholder with a holding of about 6%, said a source close to the matter.

Known for its overtures to Japanese companies to boost returns, Oasis recently helped to drive the sale of baseball stadium owner Tokyo Dome Corp to developer Mitsui Fudosan (OTC:MTSFY) in a $1.2 billion deal.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

The Oasis letter to Toshiba also proposed that the company should set up a special committee to discuss the CVC offer as soon as possible, adding that Chief Executive Nobuaki Kurumatani be excluded from the process because he is a former senior CVC executive.

Separately, the Tokyo Stock Exchange on Tuesday said there had been block trades of 72 billion yen of Toshiba shares on Friday, representing about 3.4% of the company's market value.

($1 = 109.6600 yen)

(Additoinal reporting by Hideyuki SanoEditing by Stephen Coates and David Goodman)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.