Toshiba Buyout Proposal Faces Increasing Uncertainty

Tokyo, Feb. 28 (Jiji Press)--The proposed acquisition of Japan's Toshiba Corp. <6502> faces increasing uncertainty as the company has been hit by deteriorating profitability and the departure of a key official.

It is unclear whether activist shareholders, including foreign investment funds, will agree to a 2-trillion-yen buyout proposed by a consortium led by investment fund Japan Industrial Partners Inc.

Major shareholders of the electronics and machinery giant include activist shareholders that acquired Toshiba shares issued in a third-party allotment in 2017, when the company was in a business crisis.

The price proposed by the JIP-led consortium translates into 5,000 yen per share, exceeding 2,628 yen, the 2017 issue price adjusted for a reverse split. But it falls short of 5,938 yen, Toshiba's high for 2022.

The proposed price is "disappointing," a major shareholder said. A Toshiba source said the company "cannot be sold at such a (low) price."

[Copyright The Jiji Press, Ltd.]