[Hyundai Core City] Accepting The JIP Acquisition Offer, The Former Home Appliance Giant Reorganized Dust To The Ground ...

Toshiba, who used to be a Japanese manufacturing giant, has fallen into a crisis after the 2015 accounting scandal storm.Prior to this, in order to get rid of the loss as soon as possible, Toshiba continued to sell the losing money business with little results, and finally decided to sell themselves to reorganize themselves to rescue themselves.Toshiba's reorganization finally settled ...

International e -commerce, 23rd According to the Japanese Economic News, Toshiba, a former home appliance giant, decided to accept the acquisition offer of the consortium led by JAPAN Industrial Partners Inc. (JIP).

It is reported that the resolution was passed at the board meeting held on the day.The acquisition is estimated to be about 2 trillion yen (15.3 billion US dollars). It adopts TOB (open offer acquisition) method. After the acquisition, Toshiba is expected to privatize.

It is understood that JIP will continue to apply for procedures now involving the Global Competition Law.Once approved, JIP will purchase shares from the existing shareholders through the acquisition offer.The acquisition funds will be invested from about 20 Japanese companies in the future, including ORIX, Rohm, and Chubu Electric Power, and from JapanBank loan.

In April 2022, after the two spin -out plans were blocked, Toshiba began to publicly collect and reorganize plans, including delisting.In November of the same year, JIP, who obtained the priority negotiation right through bidding, submitted an acquisition offer.In February this year, after receiving the loan commitment of financial institutions, JIP submitted the final proposal.

International e -commerce has learned that JIP's bidding plan includes 1.6 trillion yen loans.The previous plan of the consortium is that if Toshiba finally accepts the offer, financing will be completed by the end of November this year.As for the acquisition of loans, Bloomberg reported last month that several Japanese banks have issued a commitment to a loan of 1.4 trillion yen ($ 10.7 billion) loans to provide loans to the group led by JIP.

Industry view: Toshiba privatization is not easy but there are exceptions

The industry is well known that Toshiba Group provides business from semiconductor chips to nuclear energy equipment. It was once one of Japan's largest semiconductor industry and one of the world's largest PCs, home appliances and medical device manufacturers.Consumer electronics, white home appliances and PCs.After the two -degree spin -out obstruction, Toshiba began to seek for sale.In this regard, the industry has different views.

Earlier analysis believed that the process would not be too simple no matter what the decision made in Toshiba.In addition to whether the spin -off plan is, privatization also faces a huge obstacle -government support.According to the "Foreign Exchange and Foreign Trade Law", Toshiba, which has the knowledge of nuclear power, has been included in companies related to national security related to national security.

In February 2022, Satoshi Tsunakawa, then CEO of Toshiba, said that privatization would be a wrong choice due to many disadvantages.He said, first of all, Toshiba will have to sell sensitive technical business and will lose orders from public entities such as public utilities and local governments.It is worth mentioning that, as one of the most firm proposals to the privatization of Toshiba, Satoshi Tsunakawa left the board of directors in May of the same year.It can be seen that this Japanese industry giant is determined to privatize.

However, Naoki Fujiwara, the chief fund manager of Tokyo Asset Management Company, believes that it is artificial, because the success of any acquisition offer will eventually depend on who is bidding.The identity of the buyer JIP as the Japanese domestic industry alliance seems to make Toshiba's sales simple, but whether it is successful is not yet determined.

But it is certain that if the final transaction is successful, then the transaction will become the largest in Japan market since the consortium led by Bain in 2018 with the privatization of Toshiba's storage chip business KIOXIA (formerly Dongzhi memory).Acquisition transactions.