Toshiba chose on the 23rd to accept a takeover bid from the Japan Industrial Partners (JIP) camp and seek for management rebuilding through delisting. Toshiba will be the recipient of a tender offer (TOB) from JIP. The acquisition price is likely to be around 2 trillion yen.
On the 23rd, a special committee of Toshiba's outside directors voted in favor of the JIP proposal and agreed to approve it in a subsequent extraordinary board meeting. Following the discovery of the improper accounting, the company's management, which had been in a slump for eight years, decided to take significant efforts to put things back under control.
JIP will pay 4,620 yen per share for Toshiba shares, approximately 10% more than the 23rd's closing price of 4,213 yen. We plan to begin purchasing towards the end of July. The business intends to make Toshiba a wholly owned subsidiary by first acquiring more than two-thirds of the voting rights shares through a TOB.
Toshiba expressed support for the TOB plan. Concerning the shareholders, the Board of Directors has decided not to go so far as to endorse the tender, claiming inadequate board deliberation at this time. The acquisition fund is expected to be funded by approximately 1.4 trillion yen in bank loans and approximately 1 trillion yen in investment from approximately 20 companies with which the business is closely associated.
Toshiba slipped into excessive debt in 2017 as a result of worsening management and required a 600 billion yen capital boost from activist shareholders such as outside investors in order to prevent delisting. Delisting will reduce the power of activist shareholders and boost management's independence. The spotlight will now move to whether the acquisition will be accepted by offshore funds.