Toshiba Shares Reports Worth $22 Billion • The Register

Toshiba has reportedly received 10 potential offers for the company, eight of which would privatize the company while two would allow it to remain publicly listed.

Toshiba shares are said to be up as much as 6.5 percent after the news, with some estimates valuing the deals at up to $22 billion.

The Japanese conglomerate announced in April that it was considering proposals to privatize the company after numerous scandals and pressure from investor groups.

Now, Reuters reports that 10 bidders are discussing price ranges of up to 7,000 yen per share with Toshiba shareholders, citing anonymous sources, which would represent a premium of up to 27 percent on Toshiba’s current share price. This would result in the deal valuing Toshiba at 3 trillion yen ($22 billion), on the high end of previous estimates.

Toshiba declined to disclose details of the proposals, but the company’s annual shareholder meeting is scheduled for early next week – on June 28 – and more information is likely to be released at that time.

Previous reports indicated that potential investors interested in buying some or all of Toshiba included Bain Capital, currently Kioxia’s largest shareholder, CVC Capital Partners and KKR.

As expected, according to Reuters, there was a wide range of different price offers and conditions from the various bidders. There is speculation that some of these conditions may require parts to be spun off from Toshiba, as happened with the company’s memory manufacturing business, which has now become Kioxia.

Toshiba said it was considering a sale proposal to take the company private after major shareholders including 3D Investment Partners, which owns 7.6 percent, and Effissimo Capital Management pushed for a restructuring. 3D Investment Partners even went so far as to describe Toshiba as “an embarrassing corporate governance embarrassment for Japan” in an open letter to the company.

The Japanese giant’s previous plans called for it to split into three separate companies; one offers infrastructure services, one focuses on printers and point-of-sale kits, and another includes Toshiba’s semiconductor and hard drive business. However, this move was rejected by 3D Investment Partners.

At last year’s shareholders’ meeting, investors voted to dismiss Toshiba’s chairman, Osamu Nagayama, and a member of the company’s audit committee over allegations that Toshiba conspired with the Japanese government to minimize the influence of foreign investors. ® Toshiba Shares Reports Worth $22 Billion • The Register

Chrissy Callahan

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