Toshiba (6502) stock jumps on $19 billion acquisition rumor
The bid is being led by a consortium of multiple Japanese firms who aim to buy out foreign activist investors.
The Toshiba company has been on the ropes for a while now as its ownership is caught up in a tug of war between foreign activist investors and Japanese interests. However, a new bid from a consortium of Japanese firms led by Japan Industrial Partners may altogether push said activist investors out and secure the company in acquisition. The consortium is said to be preparing a $19 billion USD bid for Toshiba’s acquisition. The likelihood of the bid led Toshiba stock to jump in value earlier this week.
This story comes to us from Reuters, which recently reported on the potential bid and its effect on Toshiba’s stock. According to sources familiar, Japan Industrial Partners began the consortium to buy out Toshiba, putting up around 1 billion yen in equity (around $6.8 million USD). Other possible investors in the consortium include Orix Corp and Chubu Electric Power Co. Baring Private Equity Asia and CVC Capital Partners were also said to be considering entry, although there have been no confirmations at this time.
Toshiba has been in a state of contention between investors, as well as internal management, for some time. The company caved to activist investor pressure earlier this year, opening the door for the possible upcoming buyout, though there were tensions over the direction of the company. Those tensions spiked when it was determined that Toshiba had colluded with Japan’s trade ministry to block foreign investor influence within the company. It still remains uncertain if current Toshiba management will remain intact or be replaced if a buyout occurs.
Nonetheless, the Toshiba stock sits pretty this week on the news. As we await further updates on the possible buyout and other activity with Toshiba, stay tuned for more details as they become available.
TJ Denzer posted a new article, Toshiba (6502) stock jumps on $19 billion acquisition rumor