JIP Submits Final Buyout Proposal to Toshiba

Tokyo, Feb. 9 (Jiji Press)--Japan Industrial Partners Inc. has submitted its final proposal to buy Toshiba Corp. <6502> for some 2 trillion yen in a tender offer aimed at taking the electronics and heavy machinery maker private for promoting its business reconstruction, it was learned Thursday.

Toshiba said in a statement the same day that it has received a buyout proposal from JIP on the day. The company said it will assess the proposal and "continue to act in the best interests of" its shareholders and other stakeholders.

JIP has received certificates from five banks, including Sumitomo Mitsui Banking Corp. and Mizuho Bank, stating their commitments to provide loans to the fund for covering the costs of acquiring Toshiba, according to informed sources. By taking Toshiba private, the fund aims to eliminate the influence of activist shareholders and accelerate the company's reconstruction.

The loans from the five banks are likely to reach up to 1.4 trillion yen, including a commitment line of 200 billion yen. JIP also plans to procure a total of some 1 trillion yen in investment from some 20 Japanese companies, including leasing giant Orix Corp. <8591>, major semiconductor maker Rohm Co. <6963> and Chubu Electric Power Co. <9502> to finance the buyout.

JIP received the loan certificates about four months later than the initially planned end of September 2022, as its talks with the banks on the amount of loans and repayment terms took longer than expected due to the massive acquisition costs and concerns over Toshiba's corporate governance system. As a result, JIP is likely to miss the target of launching a tender offer by the end of March.

[Copyright The Jiji Press, Ltd.]