Toshiba’s acquisition plan announced, JIP GROUP proposes 2 trillion yen to privatize it

News from IT House on February 9th, Nikkei News reported today that a consortium led by JIP GROUP (Japan Industrial Partners) submitted a final acquisition plan for Toshiba, with a bargaining price of about 2 trillion yen (currently about 103.6 billion yen). yuan), including a 1.6 trillion yen loan, in hopes of taking the struggling company private.

Major Japanese banks, including Sumitomo Mitsui Financial Group, have signed letters of commitment to lend to the JIP-led group, two sources said on condition of anonymity. The 1.4 trillion yen loan is said to include a 200 billion yen working capital commitment.

The final offer will also include an equity component of about 1 trillion yen, they said. However, it is unclear whether this amount has been finalized.

Toshiba declined to comment, while private equity firm JIP declined to comment directly.

Bloomberg reported earlier this week, citing people familiar with the matter, that several major Japanese banks had issued loan commitment letters to support the acquisition led by Japan Industrial Partners.

IT House has reported that it was previously reported that the transaction is expected to reach around 2.2 trillion yen (approximately 111.98 billion yuan), but now it seems to be slightly higher. Previous sources had also said the stake would be offered by a number of Japanese companies, including financial services group Orix, chipmaker Rohm and Japan Post Bank.