PE Funds Enjoying Growing Presence in Japan

Economy

Tokyo, Dec. 16 (Jiji Press)--Private equity funds have been enjoying a growing presence in Japan, providing companies with opportunities for business improvement.

PE funds invest funds procured from institutional investors and others mainly in privately held companies, boost their corporate value, and sell them or take them public.

Japan Industrial Partners Inc., which has been awarded preferential negotiating rights for Toshiba Corp.'s <6502> business reconstruction, is one such funds. JIP beat rival investment companies from which the Japanese electronics and heavy machinery maker solicited turnaround proposals to put to an end its management confusion stemming partly from its confrontation with activist shareholders.

JIP has proposed acquiring Toshiba for over 2.2 trillion yen with investment from Japanese companies and loans from banks. The fund plans to take the company private through a tender offer after it secures a loan commitment from banks.

It has been reported that a syndicate of banks including Sumitomo Mitsui Banking Corp. and Mizuho Bank is preparing to lend 1.2 trillion yen to JIP to assist its acquisition of Toshiba.

[Copyright The Jiji Press, Ltd.]

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