Toshiba, Japanese industrial conglomerate, is holding discussions with potential investors after receiving interests from 10 strategic partners and sponsors.
In late April, Toshiba’s shareholders rejected its own restructuring plan to break up the company into two separate entities. And since then, it’s been looking for potential partners and sponsors to improve Toshiba’s corporate value.
The conglomerate said it provided detailed information on the company’s business and finances after the potential partners had signed confidentiality agreements. Financial dealings between the investors and Toshiba are handled by Nomura Securities who acts as its financial advisor.
Non-binding proposals to the partnership must be submitted by 30 May. After which, Toshiba will announce the total number of interested parties before its next annual general meeting at the end of June.
US private equities interests
The Financial Times reports that US private equity group KKR had approached Blackstone to prepare a joint bid for Toshiba. According to people with direct knowledge of the discussions, the two groups held preliminary talks in recent weeks.
The interest from KKR and Blackstone comes after Bain in April secured qualified support for a buyout deal from Toshiba’s largest shareholder, Singaporean investment fund Effissimo.
The buyout is expected to be led by KKR, although the talks are still in early stages and no formal decision has been reached.
Toshiba’s positive outlook
Toshiba has currently a market value of about $18 billion. On the Tokyo Stock Exchange (TSE) Friday closing time, its shares were 1.10% higher at ¥5,426 ($42). The stock is 20% up since last year.
For the current financial year, Toshiba expects a 7% rise in operating profit to ¥170 billion ($1.3 billion) despite the severe business environment such as the ongoing crisis of Covid and the Ukraine/Russia conflict.
Nonetheless Toshiba forecasts a strong 2022/23 financial year with projected sales of ¥3,337 billion ($26 billion), and therefore it announced a special dividend of ¥160 yen ($1.2) per share.