You are here: Home » International » News » Companies
Business Standard

Toshiba walked away from potential buyout talks and Brookfield offer

Toshiba's decision to not pursue either course and instead focus on a plan to split itself in three, has widened the gulf between the conglomerate and hedge fund investors

Topics
Toshiba

Reuters 

Photo: Bloomberg
Photo: Bloomberg

Japan's Corp walked away from potential private equity buyout offers at a substantial premium, as well as advanced talks for a minority stake from Canada's Brookfield, according to three people familiar with the matter.

Toshiba's decision to not pursue either course - some details of which have not been previously reported - and instead focus on a plan to split itself in three, has widened the gulf between the conglomerate and a number of its hedge fund investors, according to the people, all of whom declined to be identified because of the sensitivity of the issue.

At least one private equity firm told the committee tasked with its strategic review that a deal to take it private could be done at 6,000 yen a share or more, according to two people briefed on the review process.

Another private equity firm told the committee a deal could get done at around 5,000 yen a share, according to one of the people briefed on the review and another person.

A price of 6,000 yen would value at around 2.6 trillion yen ($23 billion) and represent a 32% premium to its average price over the past 200 days, according to Refinitiv data.

"We are communicating with shareholders explaining the separation plan we announced on Nov. 12 as well as listening to their opinions," Toshiba said in a statement to Reuters. "We will continue our communications with various stakeholders." Some shareholders have also taken issue with Toshiba's decision not to pursue talks with Canada's Brookfield Asset Management, one of the private equity firms, on a potential minority investment, according to several sources.

That could have seen Brookfield, which successfully turned around the conglomerate's bankrupt nuclear power business Westinghouse, take a minority stake and help overhaul the business, sources said.

Brookfield did not immediate respond to a request for comment.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, December 06 2021. 09:41 IST
RECOMMENDED FOR YOU
.