A group led by Japan Industrial Partners (JIP) is in talks to acquire Toshiba
Corporation for 2.4 trillion yen, or $16.1 billion. The deal if succeeded will be Asia’s biggest buyout of
the year 2022. 

JIP’s group plans to pay 1 trillion yen in cash
while the pending 1.4 trillion is to be financed through banks along with a
committed line of credit of 200 billion yen in working capital, reported
Bloomberg. 

The Japanese manufacturer in its regular meeting
with the banks informed that JIP is bidding for Toshiba at around 2.4 trillion
yen on October 20, asking them for financing support, the report stated.

Also Read: Australia inflation soars to 32-year high of 7.3%

Toshiba’s stock plunged as much as 1.8% on
Tuesday in Tokyo, taking the market value of the company to about $15.6
billion. A bid at 2.4 trillion yen will stand around about 5,541 yen per share
close to its closing price of 5,391 yen per share on Monday. 

The deal is still on the table as negotiations
are ongoing and no surety can be ascertained if the transaction will conclude
or not.

Also Read: Elon Musk plans to close Twitter deal by Friday, October 28: Report

JIP is under discussions to partner with
domestic companies such as Orix Corp. and Chubu Electric Power Co. and global
investment firms including Baring Private Equity Asia and CVC Capital Partners and
would keep Toshiba’s current business structure as it is, the report stated.

Bain Capital and MBK Partners are reportedly
involved in JIC’s rival bid group.

Also Read: Google fined Rs 936 crore by Indian regulator for ‘abusing’ market position

Toshiba Corporation is a
Japanese giant in computer and electronic device manufacturing for consumers
and industry. Tokyo Shibaura Electric Company Ltd. was incorporated with the
merger of Shibaura Engineering Works Co. Ltd. and Tokyo Electric Company in
1939. Later in 1978, it changed its name to Tokyo Corporation. It is currently
headquartered in Minato, Tokyo. The company works in multiple business domains:
energy systems, infrastructure systems, printing machines, electronic and
storage devices, digital solutions and battery business.