Toshiba Talks With 4 Investment Firms On Strategic Ideas

Toshiba Corp. is in talks with at least four global private equity firms including KKR & Co Inc. and Blackstone Inc. to seek their ideas for its new strategy, three sources with knowledge of the matter said, Makiko Yamazaki and Scott Murdoch reported for Reuters.

Photo Insert: Toshiba Nagoya building

Bain Capital and Canadian investment firm Brookfield have also been tapped by the scandal-hit Japanese conglomerate's strategic review committee to put together and submit their ideas for Toshiba, the sources said.

The latest process is not meant to formally solicit buyout bids for the overall company or some of its assets, and it's not immediately clear whether the engagement with buyout firms will result in formal offers in the future.

The step, however, indicates that Toshiba is engaging with potential bidders since shareholders ousted its chairman in June after the company was found to have colluded with the Japanese government to put pressure on foreign investors.

After the chairman's ouster, Toshiba, which has many lines of business and units and operates in several jurisdictions, launched a full review of its current assets. It also pledged to engage with potential strategic and financial investors.

"As announced, Toshiba's strategic review committee is considering and discussing a wide range of initiatives without delay," Toshiba said in a statement to Reuters. Toshiba, which had a market valuation of about $19 billion as of Wednesday, "plans to present the achievements when we announce the new business plan in October", it said but declined to comment further.

WEEKLY FEATURE : PAL READY TO SOAR WITH PANDEMIC