© Reuters. FILE PHOTO: Toshiba logos are pictured at a venue of Toshiba Corp’s annual general meeting with its shareholders in Tokyo, Japan, June 25, 2021. REUTERS/Kim Kyung-Hoon
TOKYO (Reuters) – Japan Industrial Partners (JIP), the preferred bidder to buy out Toshiba (OTC:) Corp, may lower the valuation from the planned 2.2 trillion yen ($16.09 billion) to levels below 2 trillion yen, the business daily reported on Saturday.
Even though JIP has secured funding worth 1 trillion yen in equity from domestic companies and 1.2 trillion yen in loans from major banks, it may cut the valuation in light of a recent deterioration in Toshiba’s earnings and the need for post-buyout working capital, the Nikkei said.
Toshiba said in a letter to shareholders on Friday that it was aiming to reach a conclusion with potential partners as soon as possible.
It is “planning to receive binding and bona-fide proposal(s) and shall be making strong efforts to arrive at a conclusion as early as possible after necessary negotiations,” the letter said.
($1 = 136.6900 yen)
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