Toshiba plans to buy for $15 billion

Japanese banks provide necessary funds for the acquisition of Toshiba

A consortium led by Tokyo-based fund Japan Industrial Partners has made a final offer to buy Toshiba, Kyodo Tsushin reported Feb. 9.

Toshiba headquarters in Tokyo

Toshiba headquarters in Tokyo

EXECUTOR

The purchase price is expected to be around 2 trillion yen ($15 billion).

Japan Industrial Partners has received letters of commitment from banks offering a loan of about 1.4 trillion yen ($10.7 billion), which will give the consortium sufficient funds to acquire Toshiba.

The banks have approved the loan on the condition that they can appoint representatives to Toshiba’s board of directors to ensure that the company is managed in a way that does not jeopardize the consortium’s ability to repay the debt.

So far, five banks have pledged to provide financing: Sumitomo Mitsui Banking has offered 515 billion yen, Mizuho Bank 460 billion yen, and Sumitomo Mitsui Trust Bank 220 billion yen. MUFG Bank and Aozora Bank also joined the scheme.

It is expected that about 20 Japanese companies, including Orix. and Rohm, as part of the consortium, will invest a total of about 1 trillion yen ($7.6 billion) in Toshiba.

Toshiba is struggling to recover from a number of problems in the 2010s, in particular from the scandal that erupted due to the overstatement of its profits using distorted financial documents. At the same time, Toshiba suffered huge losses in the nuclear business in the United States.


Read earlier in this story: Japanese banks try to save Toshiba from bankruptcy

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