Toshiba shares surge after report of $27.4 billion buyout bid
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Shares of Toshiba were up 8.5 per cent at 5,566 yen in morning trade in Tokyo.
PHOTO: REUTERS
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TOKYO - Shares in Toshiba jumped about 9 per cent in early trading on Thursday following a report that a domestic-led consortium is looking to buy the Japanese conglomerate for 2.8 trillion yen (S$27.4 billion).
News agency Kyodo reported on Wednesday that a group of firms led by Japan Industrial Partners (JIP), a domestic private equity group, had made the bid, which marked a premium of around 26 per cent from Wednesday's closing price.
The group, which includes Chubu Electric Power, had received the right of first refusal in its bid for Toshiba, the Nikkei business daily reported.
Shares of Toshiba were up 8.5 per cent at 5,566 yen in morning trade in Tokyo, putting them on track for their biggest one-day gain in more than a year.
JIP's consortium will put up about one trillion yen and likely borrow the rest from financial institutions, Kyodo reported. It said the price could still change depending on Toshiba's share price and valuation premium.
Asked about the report, a Toshiba spokesman said the company could not comment on candidates as doing so could undermine fair process.
Toshiba said last month it had received multiple in-depth written indications of interest from potential partners in a second bidding round for strategic alternatives. REUTERS
