Toshiba Corp’s second-largest shareholder called on the Japanese group to undergo a strategic review and explicitly solicitors, disgusted by the company’s comments on the desire to list potential acquaintances.
Comments from 3D Investment Partners, which owns a 7.2% stake in Toshiba, came in the form of a $ 20 billion buyout offer from CVC Capital Partners earlier this month that raised hopes of a bid war for the Japanese company have given.
However, Toshiba rejected the offer, citing lack of details, which the CVC did not throw a towel on and sources said some other private equity investors are also considering bidding.
3D made public further in a letter sent to Toshiba’s board on Monday, “We have called on the board to welcome suits that can enhance corporate value and ask the board to formally review strategic options.”
“In order to conduct a fair and just process, Toshiba must clearly indicate that it is open to alternative ownership structures and correct the media speculation that Toshiba’s management team and the board will receive the remainder of a listed company. There is a strong preference for, ”3D said.
The industrial group has said that it is believed that being publicly traded provides a “capital structure that is suitable for enhancing long-term value creation” but said its board would not disregard various proposals, including the company Private take is included.
In response to a request for comment on 3D’s letter, Toshiba reiterated that stance on Monday.
Earlier this month, the U.S. Hedge fund Farlon Capital Management, Toshiba’s third-largest shareholder, with a stake of around 6%, also asked the Japanese group to take other offers from potential suitors.
Toshiba’s top shareholder of Singapore-based Effissimo Capital Management, with a stake of around 10%, has not commented after the CVC’s proposal was made public.
Bain Capital, KKR & Co. and Canada’s Brookfield Asset Management are also looking at possible bids for Toshiba, Reuters has reported.
A senior executive at one of Toshiba’s main lenders said that several private equity funds have approached their bank for possible financing, but no negotiations are ongoing.
In the letter, Singapore-based 3D suggested that if the Toshiba board fails to consider its request, it would take further action, stating that shareholders would have “to seek a more significant and ongoing role in governance There will be no option other than “.
3D-estimated Toshiba’s fair stock is up more than 6,500 yen, compared to Monday’s closing price of 4,465 yen.
Another Toshiba investor said, “Shareholders will hold management accountable when they try to block these interests in order to buy the company.”
“Reuters, Bloomberg”
Toshiba Stock price: TOSBF (OTCMKTS) $41.26 0.00 (0.00%)
Apr 21, 3:22 PM EDT
