Yahoo Finance Toshiba Falls After Report JIP-Led Group Submits $15 Billion Bid
(Bloomberg) -- Toshiba Corp. fell after the Nikkei reported that a consortium led by Japan Industrial Partners Inc. submitted a 2.2 trillion yen ($15 billion) offer for the Japanese conglomerate, a level in line with its market value.
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Shares dropped as much as 2% in early Tokyo trading Tuesday even as the benchmark Topix index gained. The JIP-led group, the preferred bidder for Toshiba, will get around 1 trillion yen of the funds from Japanese firms, more than 10 of which have expressed an interest in participating in the buyout, the newspaper said. JIP itself will invest 100 billion yen, it said.
Toshiba had a market capitalization of $15.1 billion as of Monday’s close.
Toshiba spokeswoman Midori Hara declined to comment, saying to do so would undermine fair process. A spokesperson for JIP declined to comment.
JIP hadn’t received a commitment letter from financial institutions as of Monday, Nikkei reported. It’s in talks to complete the financing process by the end of this month if Toshiba accepts the offer, the paper said.
The JIP-led group was poised to miss Monday’s deadline for securing financing, Bloomberg reported last week.
--With assistance from Taro Fuse.
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