Shares in Toshiba Corp surged on Thursday after news that a domestic consortium was set to buy the Japanese conglomerate for 2.8 trillion yen ($19.1 billion). The sources reported on Wednesday that a group of firms led by Japan Industrial Partners, a domestic private equity firm, had made an offer that represented a premium of around 26% to Wednesday’s closing price. The consortium will put in about ¥1 trillion in equity, with the rest of the money likely to come from bank financing, adding that financing negotiations are ongoing.
The price could also change depending on future movements in Toshiba’s share price. “I’m pretty sure the Consortium would be able to pull off such a price. Bank financing is almost certainly there to pay more,” said analyst Travis Lundy of Quiddity Advisors on the Smartkarma platform. Shares in Toshiba jumped 7.5% to trade at ¥5,519 by 0126 GMT, on course for their biggest one-day gain in more than a year. They rose to ¥5,616.
The consortium, which includes Chubu Electric Power Co , has won the right of first refusal in its bid for Toshiba, the Nikkei business daily reported earlier. When asked about the report, a Toshiba spokesman said Wednesday that the company could not comment on the candidates because it could undermine a fair process. Toshiba said last month that it had received several detailed written expressions of interest from potential partners in the second round of bidding for strategic alternatives.
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