Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Toshiba receives interest from 10 potential investors

Stock Markets May 13, 2022 06:01AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Toshiba logos are pictured at Toshiba Corp's annual general meeting with its shareholders in Tokyo, Japan, June 25, 2021. REUTERS/Kim Kyung-Hoon

By Makiko Yamazaki and Sam Nussey

TOKYO (Reuters) -Japan's beleaguered Toshiba (OTC:TOSYY) Corp said on Friday it has received interest from 10 potential investors after soliciting buyout offers.

The conglomerate, long under pressure from activist shareholders, also announced a special dividend worth some $545 million, the second year in a row it has issued such a payout.

Toshiba, which has since 2015 been bedevilled by accounting and governance crises, set up a special committee last month to explore strategic options including potential deals to go private after shareholders voted down a management-backed restructuring plan.

Toshiba, whose businesses span nuclear energy, infrastructure, devices and semiconductors, said 10 potential investors had signed confidentiality pledges, without identifying them. They have been given detailed financial information and the deadline for submitting non-binding proposals is May 30.

It was not clear how many separate proposals Toshiba might end up entertaining.

"Everyone will be in to kick the tires," said Quiddity Advisors analyst Travis Lundy who publishes on Smartkarma.

"Even if someone only wants a piece of the business, being involved in the first stage gets them the visibility to join a consortium for a second round formal bid," he said.

U.S. private equity firm Bain has sounded out multiple other Toshiba shareholders about teaming up as it prepares to make a buyout offer, sources have previously told Reuters. And Toshiba's top shareholder, Singapore-based Effissimo Capital Management, has said it has agreed to sell its 9.9% stake to Bain if it launches a tender offer.

Blackstone (NYSE:BX) and KKR are considering a joint bid for Toshiba, according to media reports earlier this week.

Those three private equity firms and Canadian investment firm Brookfield were tapped by Toshiba's strategic review committee last year to put together and submit ideas for the conglomerate, sources have previously said.

In April 2021, CVC Capital Partners made an unsolicited offer to take Toshiba private worth more than $20 billion which the conglomerate rejected as lacking in detail. Toshiba currently has a market cap of $18.3 billion.

Toshiba said it has hired JPMorgan Chase & Co (NYSE:JPM) and Mizuho Financial Group Inc as financial advisors in addition to Nomura Holdings (NYSE:NMR).

It also has delayed board director nominations, saying it needed more time to finalise candidates. The company, which will hold its annual general meeting in June, is trying to ascertain whether there were any conflict-of-interest issues for some candidates, according to a source familiar with the matter.

Interim board chairman Satoshi Tsunakawa has been in the position on a temporary basis. Shareholders last year rejected the re-election of his predecessor, angered after an investigation found that the company's management colluded with the Japanese government to put pressure on foreign investors.

Toshiba also forecast a 7% rise in operating profit to 170 billion yen ($1.3 billion) this financial year after a 52% jump in the year just ended. Toshiba's outlook compares with a Refinitiv consensus estimate of 177 billion yen,

The special dividend of 160 yen per share would bring total dividends planned for this financial year to 290 yen. That's up from last year's total of 220 yen which included a special dividend of 110 yen.

($1 = 128.7 yen)

Toshiba receives interest from 10 potential investors
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email