JIP Group, the preferred bidder for privatizing Japanese industrial groups, plans to request 1 trillion yen in cash and 1.4 trillion yen from the bank for financing.
A corporation led by Japan Industrial PartnersInc. is considering a preemption of ToshibaCorp. According to people familiar with the matter, at a valuation of about 2.4 trillion earning ($16.1 billion) in what could be Asia’s biggest buyout this time. Toshiba, in its regular meeting with banks including Sumitomo Mitsui Banking Corporation on 20th October, informed them that JIP was esteeming the company at around 2.4 trillion yearnings and asked them to give backing support.
Toshiba’s stock is up about 17% this year, giving the alliance a market value of about $15.7 billion. The 2.4 trillion yen offered costs around 5,541 yen per share, comparable to Toshiba’s closing price of 5,391 yen in Tokyo on Monday, according to Bloomberg calculations.
JIP hasn’t completed the equity partner’s commitments yet, people say, but the bank is wary of mandatory commitments. A consortium led by JIP and a rival group led by state-owned investment fund Japan Investment Corp. will both struggle to meet the November deadline. Bloomberg News previously reported that the 7th is the deadline for writing the pledge.
According to Bloomberg News, JIP is in talks to partner with local companies, including Orix Corp. and Chubu Electric Power Co, as well as global investment firms such as Baring Private Equity Asia and CVC Capital Partners. The coalition has put forward a proposal to keep Toshiba’s current business structure intact.
