Banks Seen Lending 1.2 T. Yen for JIP's Toshiba Bid

Economy

Tokyo, Dec. 15 (Jiji Press)--A bank syndicate including Sumitomo Mitsui Banking Corp. and Mizuho Bank is preparing to lend 1.2 trillion yen to support Japan Industrial Partners Inc.'s bid for Toshiba Corp. <6502>, it was learned Thursday.

JIP, a Tokyo-based investment fund, hopes to secure over 2 trillion yen to buy Toshiba. Expecting about 1 trillion yen in investments from over 10 Japanese companies, JIP is trying to procure the rest from banks.

After obtaining a loan commitment from the syndicate, JIP will present a detailed acquisition proposal to Toshiba.

If the proposal is accepted, JIP will launch a tender offer to take Toshiba private. The focus will be whether major Toshiba shareholders, including activist foreign investment funds, will approve the proposal.

In order to facilitate the reconstruction of Toshiba, JIP hopes to take Toshiba private to remove pressure from activist shareholders that Toshiba has struggled with.

[Copyright The Jiji Press, Ltd.]

Jiji Press