The buyer who prefers Toshiba to stay with the company, JIP, is finalizing the details to carry out the operation. Among them is ensure that it has 10,600 million dollars in financing to finance the purchase, which it will procure entirely from Japanese entities, according to Reuters. Apparently, when the purchase process is closed, Toshiba would become a private company.
Japan Industrial Partners (JIP), the group of entities that seems to be staying with it, has a good chance of being able to secure the money it needs before the end of this month, according to several sources directly related to the operation.
Most of the money Japan Industrial Partners needs for the purchase will be lent to it by the banking divisions of three banking entities: Mizuho Financial Group, Sumitomo Mitsui Financial Group Y Sumitomo Mitsui Trust Holdings Inc. The main banking division of the largest Japanese financial group, Mitshubishi UFJ Financial Group and Aozora Bank Ltd. will also participate in the operation.
Toshiba, whose business divisions range from nuclear power to defense technology, owns 40.6% of memory chip maker Kioxia Holdings. Last week he sent a letter to his shareholders assuring them that he intended to reach a conclusion on potential partners for a sale as soon as possible.
Japan Industrial Partners is probably not the only business group to be involved in the Toshiba sale. It is very likely that others will join him, also Japanese. Among them are the Orix financial services groupthe chip maker Rohm Co Ltd Y Japan Post Bank. Of course, although JIP is trying to secure the amount that we have mentioned to close the purchase agreement, it is possible that the final costs of the operation may vary, mainly due to market conditions.
Toshiba named JIP as the preferred group to stay with the company last October. Then, the Toshiba group asked said venture capital entity to present letters of commitment from the banks that were going to participate in the operation before last November 7, which Japan Industrial Partners was not able to comply with. At the beginning of this month of December, JIP was closer to obtaining the support of banking entities for the operation. For this, yes, he had to propose several steps aimed at restructuring the group.
When the purchase transaction closes, investors will be very attentive to how Toshiba and its board evaluate JIP’s plan to reform Toshiba and help it get out of the situation it is in, considered quite problematic for its future.
