Toshiba gets interest from 10 potential investors

Toshiba gets interest from 10 potential investors

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.

Japan’s beleaguered Toshiba Corp said on Friday it has gotten interest from 10 likely investors after requesting buyout offers. The conglomerate, long under pressure from activist investors, likewise reported an exceptional profit worth some $545 million, the second year straight it has given such a payout. Toshiba, which has beginning around 2015 been bedeviled by bookkeeping and governance emergencies, 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.

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 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 and Mizuho Financial Group Inc as financial advisors in addition to Nomura Holdings.

It also has delayed board director nominations, saying it needed more time to finalize 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.

Disclaimer: If you need to edit or update this news from compsmag then kindly contact us Learn more

For Latest News Follow us on Google News


Latest Headlines
  • Show all
  • Trending News
  • Popular By week
The Thunderbirds have announced their home games for the next round of the Calder Cup Playoffs
The Thunderbirds have announced their home games for the next round of the Calder Cup Playoffs
The Thunderbirds advanced in the Calder Cup Playoffs over the weekend after beating the Wilkes-Barre/Scranton Penguins 7-6 in Game 3 of their series to sweep ...
To increase production, Quanta is considering relocating its MacBook Pro factory
To increase production, Quanta is considering relocating its MacBook Pro factory
The supply constraint is because of ongoing plant closures in areas with elevated COVID-19 cases. The Chinese government implemented a zero tolerance policy ...
With shiny surface on Pixel 7, Google blinds critics
With shiny surface on Pixel 7, Google blinds critics
This went against what Google previously disclosed in a response to tech Youtuber Marques Brownlee. The company claimed that the new Pixels were going to ...
Manappuram Finance net profit drops 44% to Rs 261 cr in March quarter
Manappuram Finance net profit drops 44% to Rs 261 cr in March quarter
“Our PAT (Profit After Tax) has been affected temporarily due to shifting of high yield to lower yielding gold loans. We have reduced Opex (operating ...
Former Apple Employees Like Deirdre O'Brien Are Helping With Unionization Efforts
Former Apple Employees Like Deirdre O’Brien Are Helping With Unionization Efforts
Groups at two stores are reportedly preparing paperwork to file with the National Labor Relations Board, with about six more locations at earlier stages of ...
On Android, RainViewer 2.16 included all-new widgets
On Android, RainViewer 2.16 included all-new widgets
RainViewer 2.16: all-new weather widgets for Android The new RainViewer 2.16 version presented the revamped weather widgets, with the support of the Material ...
Investors Shocked When US Retailers Show Inflation Hitting Consumers
Investors Shocked When US Retailers Show Inflation Hitting Consumers
Target’s earnings showed consumers spending more on food and household essentials instead of high-margin discretionary items while Walmart showed shoppers ...
Voice Actor for Deathloop Teases New Game
Voice Actor for Deathloop Teases New Game
When asked by a fan if there are plans for a Deathloop DLC, Kelley responded that he can’t really say much aside from the fact that it is not a DLC, and that ...
Renders and certifications for the Motorola Moto G42 emerged
Renders and certifications for the Motorola Moto G42 emerged
One the plus side, there are leaked images that we can look at, thanks to leakster Abhishek Yadav. Nothing unexpected here, the design fits with the rest of ...
On June 28th, Escape Academy will bring the escape room experience to PS5 and PS4
On June 28th, Escape Academy will bring the escape room experience to PS5 and PS4
The game was announced a couple of months ago with a loose release window of June this year. Now, the studio has confirmed Escape Academy will launch on 28th ...
Show next
We will be happy to hear your thoughts

Leave a reply

Compsmag - Latest News In Tech and Business
Logo