Toshiba has raised more than $10 billion in financing
2022.12.23 03:24
Toshiba has raised more than $10 billion in financing
Budrigannews.com – Toshiba’s preferred bidder (OTC:) According to two sources, Corp is finalizing 1.4 trillion yen ($10.6 billion) in financing from Japanese lenders to fund its acquisition. This deal would see one of the most well-known conglomerates in the country taken private.
According to sources with knowledge of the situation, who declined to be identified due to the secret nature of the discussions, private equity firm Japan Industrial Partners (JIP) is anticipated to secure commitments from banks by the end of this month.
They stated that 200 billion yen of working capital is included in the 1.4 trillion yen.
Sumitomo Mitsui, the primary banking division of Mizuho Financial Group (NYSE:) According to three sources, Financial Group and Sumitomo Mitsui Trust Holdings Inc. are anticipated to lend more than 1 trillion yen together.
The center bank unit of Japan’s greatest monetary gathering, Mitsubishi UFJ (NYSE:) They added that Aozora Bank Ltd. and Financial Group are participating as well.
All five banks’ spokespersons declined to comment. JIP did not immediately respond to requests for comment.
Toshiba, which owns 40.6% of memory chip manufacturer Kioxia Holdings and operates nuclear power and defense technology businesses, declined to comment. It said in a letter to investors last week it was expecting to arrive at a resolution with likely accomplices straightaway.
The financial services company Orix (NYSE:) is expected to pay at least 2.2 trillion yen for the transaction. According to a previous report from Reuters, Japan Post Bank and chipmaker Rohm Co Ltd are among the Japanese companies that are likely to join JIP in its bid.
According to two sources, the market conditions could influence the final cost.
In October, Toshiba made a group led by JIP its preferred bidder for the buyout process. Toshiba then asked the private equity firm to provide commitment letters from banks by November 7, but the company was unable to do so.
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However, sources have previously stated that JIP had moved closer to securing the support of banks by the beginning of this month after proposing specific restructuring measures.
Investors will closely follow the evaluation of JIP’s plan to overhaul the troubled conglomerate by a Toshiba special committee and its board once the bid is finalized.
