Toshiba eyes $22bn buyout offer in bid to go private

Toshiba is considering up to eight buyout proposals, and a further two capital alliance options, it has been reported.

Although the firm has declined to confirm any details at time of writing, insiders have indicated to Reuters that potential prices of up to 7000 yen per share would value the business at 3 trillion yen, or $22 billion dollars.

However, those aware of the details have stressed that the offers greatly vary in price, and that this figure represents the upper limit of what is on offer.

As the conglomerate prepares to finalise a shortlist of proposals by the end of June, Toshiba shares rose by up to 6.5% on Thursday.

The same sources claim that KKR & Co Inc (KKR.N), Baring Private Equity Asia, Blackstone Inc (BX.N), Bain Capital, Brookfield Asset Management (BAMa.TO), MBK Partners, Apollo Global Management and CVC Capital Partners have all made offers.

Late last year, the ailing multinational giant had announced plans to split into three separate companies, with a completion date of March 2024. But in February, unexpected opposition from shareholders had the company propose a new restructuring plan to split their devices business and infrastructure business down the middle, again to no success.

The potential deal is being played out against the backdrop of a waning Japanese market, with the yen at a 24-year low of 136.71 on Wednesday morning.

The Bank of Japan has faced criticism for its policy of keeping interest rates low even as the United States Federal Reserve is set to raise interest by another 0.75 points in July.