Japanese Banks, Companies Offer $14-B For Toshiba

Toshiba announced a 2 trillion yen ($14 billion) tender offer on Monday, in a move that would take it private, as the scandal-tarnished Japanese electronics and energy giant seeks to turn itself around, Yuri Watanabe reported for the Associated Press (AP).

Photo Insert: The tender offer for Toshiba led by a buyout fund of major Japanese banks and companies called Japan Industrial Partners starts Tuesday and is priced at 4,620 yen ($32) a share.

The tender offer led by a buyout fund of major Japanese banks and companies called Japan Industrial Partners starts Tuesday and is priced at 4,620 yen ($32) a share. Chairperson Akihiro Watanabe asked shareholders to back the proposal, saying it is the only option for Toshiba Corp. to return to its former strength.

“This move for Toshiba is great not only for Japan but also for the world,” he said. “I have faith in the revival of Toshiba.”

Tokyo-based Toshiba also reported a 25 billion yen ($176 million) loss for the April-June quarter on 704 billion yen ($5 billion) in sales, down nearly 5% from the previous year. It did not give a full fiscal year profit projection, citing uncertainties in its computer chip business.

If the proposal succeeds, it will be a major step in Toshiba’s yearslong turnaround effort, allowing it to delist from the Tokyo Stock Exchange.

At least two-thirds of shareholders must offer their stakes for the bid to succeed. Overseas activist investors own a significant number of Toshiba’s shares, and some have expressed dissatisfaction about the bid. The Toshiba board accepted the deal in March.

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