Japan Industrial Partners (JIP) have initiated the takeover of tech giant Toshiba. Formally, the JIP subsidiary TBJH Inc. is to take over – but for this to happen, enough shareholders must sell their securities. The company is offering 4,620 yen per share as previously decided.
For the takeover to go through, JIP needs a stake of at least 66.7 percent. This corresponds to 288,731,000 shares. If too many shareholders do not sell their shares, Toshiba will remain on the stock exchange. In this case, JIP calls off the takeover and reverses all transactions. If the group of companies reaches the minimum share, a so-called squeeze-out takes place: All remaining shares are forced to be sold.
The Toshiba group has been on the verge of profitability for years and is trying to restructure. Among other things, he repelled the NAND flash division (Toshiba Memory), which is now independent under the name Kioxia. Toshiba itself is one of the last three manufacturers of hard drives, alongside Western Digital and Seagate.
Euro value is falling steadily
There are 432,880,060 Toshiba shares in total. Accordingly, a successful takeover will cost JIP two trillion yen. The purchase price of 4620 yen per share is based on the price of April 2021. At that time, Toshiba management announced that it was considering taking the company from the stock exchange.
Since then, the share price has risen to 4,610 yen – the takeover bid is practically priced in. However, European shareholders have little to smile about: the yen rate is on a downward slide, so that the euro value of the takeover has fallen from 14 billion to a good 12.7 billion euros since March 2023 alone.
Until September time
JIP’s takeover offer is effective immediately for 30 days. The group of companies must be offered enough shares by September 7th so that the takeover can take place. SMBC Nikko Securities is conducting the transactions.
Those wishing to accept the 4,620 yen offer must open an account with the bank and transfer the shares there. If that is too much work for you, you can sell the share through your own broker at a slightly lower price. A specially set up website summarizes all the information.
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