Tokyo The year-long Toshiba takeover saga is drawing to a close. A consortium led by the financial investor Japan Industrial Partners (JIP) is expected to submit an offer worth the equivalent of a total of 14 billion euros at the end of July, the Japanese conglomerate announced on Thursday. The Board of Directors supports the offer, but refrains from recommending acceptance to Toshiba shareholders.
Toshiba, one of the most famous companies in Japan, offers numerous products from memory chips to printers to air conditioners. In recent years, the group has been shaken by accounting scandals and, among other things, has accumulated billions in losses due to the bankruptcy of the US nuclear subsidiary Westinghouse. In the subsequent dispute with activist investors about a realignment, Toshiba wore out several CEOs.
The takeover ended months of uncertainty about the future of the traditional group, said analyst Travis Lundy from investment advisor Quiddity Advisors. The selling price is lower than expected. But the relief that there is finally a deal might outweigh this. Last year, insiders discussed a takeover bid with a volume of up to 20 billion euros.
According to the information, JIP offers 4620 yen per share. That price is 9.4 percent higher than Thursday’s closing price on the Tokyo Stock Exchange. The stocks listed in Frankfurt grew at a similar rate.
Analyst Atul Goyal from the investment bank Jefferies expressed skepticism about the deal. Toshiba apparently preferred JIP as a buyer because the financial investor signaled that management and company changes would be limited. “We are now wondering how the group will then create added value.”
Because Toshiba’s operational business is anything but smooth: a few weeks ago, after a slump in profits, the group lowered its business targets for the second time within a few months.
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