The Japanese technology company Toshiba
TOSHIBA CORP
+10.57%
closure:0
opening:18.6
High:19.61
low:18.6
cycle:—
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reported that it will be sold for 19 billion dollars to a local financing body. In response, the stock jumped 11% in pre-trade on Wall Street and 7% in Japanese trading. Since the beginning of the year, the company has risen by about 17%.
The buyer of the company reported that if he completes the transaction, he will make sure that external investors will be able to join the company financially through any financial instrument in which it will be traded, this after years in which the company did not really allow such activity. The buyer offered an amount of about 2.8 trillion yen (as mentioned, 19 billion dollars), for the company, which is a 26% premium over the last closing price.
The purchasing body – JAPAN INDUSTRIAL PARTNERS, turned to other technological bodies throughout Japan, when companies such as the financing body Orix had already announced that it would join, while other companies such as Chubo Electric Power announced that they were also considering joining the deal. The purchasing fund was involved in previous businesses in the Japanese stock market, such as the acquisition of the camera branch of the Olympus company, and the laptop branch of the Sony company last year.
The Toshiba company was recently involved in a long series of violations in the fields of accounting and the Japanese government. The company’s attempts to solve these problems have disappeared in recent years following many disputes between the company’s management and the public and the companies that invest in it.
The financing body is expected to invest an amount of about one trillion yen ($6.82 billion) by buying shares of Toshiba, while the rest of the amount will come with the help of loans that the body will take from the various banks. Since the buyer has announced that she will buy the company’s shares, it is expected that this amount will change in the near future, depending on the movement of the stock in the Japanese and American stock exchanges.
The company has been in the process of selling for several months. It is not yet known how many acquisition offers Toshiba has gone through, and whether the position of the acquiring fund is really that unequivocal, this is when many analysts believe that it is still an open race between JAPAN INDUSTRIAL PARTNERS and another Japanese company – JAPAN INVESMENT CORP – which even receives support from the state. Sources privy to the details report that in the past the two companies considered acquiring Toshiba together, but have since split up.
For a long time, many investors in Toshiba wondered which direction the company would go, while large international investment bodies even urged the company to consider selling its shares to private entities. These pressures increased in the last year after the Japanese government decided that it was a too important company, whose strategic capabilities are for the continued existence of Japan as a sovereign state, and refused international investors to hold too high a percentage of the company.
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