The preferred bidder for the acquisition of Toshiba had bid below the widely believed threshold of 6,000 yen (about 290 yuan) per share, making the value of the potential takeover offer less than 2.6 trillion yen, suggesting that the premium to Toshiba may not be as high as investors expected.
Founded in July 1875, Toshiba is Japan's largest semiconductor manufacturer and the second-largest integrated motor manufacturer. It is part of the Mitsui Group. Its businesses include digital products, electronic components, social infrastructure equipment, and home appliances. The company is seeking a takeover bid to take Toshiba private or other strategic options.
Last week, Japanese private equity firm Japan Industrial Partners (JIP) was seeking to partner with a number of Japanese companies to buy Toshiba, people familiar with the matter said.
JIP has invited Chubu Electric Power Co., financial services giant Orix Corp., Nippon Life Insurance Co., Toray Industries, and Tokai. More than 10 companies including Central Japan Railway Co. joined its consortium.
In a second round of bidding on Oct. 7, Toshiba awarded a consortium led by JIP as a preferred bidder, though Toshiba remains open to other bids, according to people familiar with the matter.
The consortium led by JIP, a consortium led by the Japanese government-backed investment fund Japan Investment Corp (JIC), Bain Capital, CVC Capital Partners, MBK Partners, and Brookfield Asset Management is also preparing to compete. Buy Toshiba.
JIP and JIC cooperated in the bidding, but then the cooperation broke down and they reorganized the bidding alliance.
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