Toshiba Corp. plans to return an additional 150 billion yen ($1.37 billion) to shareholders and establish a strategic review committee to examine options for the business.
The Japanese energy-to-electronics conglomerate is under pressure from 3D Investment Partners and other investors to run a strategic review of the business, after private equity firm CVC Capital Partners proposed in April taking the company private for $21 billion. While that bid has stalled, 3D Investment argued Toshiba’s board had to explore any serious interest in the company and rebuild shareholder trust.
The company’s stock has seen large swings since the CVC bid, with the shares closing as high as 4,895 yen on April 15 before falling in recent weeks. It was little changed after the new shareholder return announcement at about 4,465 yen.
It’s not clear whether other reported bidders will proceed with a formal offer. After CVC’s initial approach, private equity firm KKR & Co. and Canadian investment giant Brookfield Asset Management Inc. began exploring potential offers, Bloomberg News has reported. Bain Capital has entered into discussions with Japanese banks, including units of Mizuho Financial Group Inc. and Sumitomo Mitsui Financial Group Inc., to secure funding for a potential bid, Reuters has reported.
Source: BNN Bloomberg
By Vlad Savov and Yuki Furukawa
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