Toshiba shareholder pushes for buyout talks with Bain and other private equity groups

Toshiba’s second-largest shareholder, 3D Investment Partners, is pushing for the company to open talks on a private deal after it was revealed last week that Bain Capital is set to make a $ 17 billion takeover bid for the Japanese conglomerate.

The Singapore Hedge Fund said in a letter sent Wednesday to Toshiba’s board of directors that the company had become “an embarrassment of corporate governance for Japan” as it wandered from crisis to crisis.

She called on Toshiba to resume its strategic review process, to take it seriously Potential buyers And propose board seats to persons proposed by the major shareholders in preparation for the annual general meeting scheduled for June.

The company must “renew the strategic review process and encourage and solicit bids for all or part of a minority investment in Toshiba,” 3D wrote in the letter. Toshiba did not immediately respond.

Toshiba said last week that it would “make every effort to build trust with shareholders and reconsider its strategic options to continuously improve corporate value.”

3D’s intervention reflects growing concern among Toshiba investors that the company’s split board will dismantle a strategic review committee (SRC) set up last year, derailing the momentum for planning a future strategy after a period of turmoil that brought the conglomerate to the brink of bankruptcy.

The acquisition of Toshiba, which has businesses covering sensitive areas, including nuclear energy, defense and semiconductors, will be one of Japan’s largest deals ever and will mark a milestone for the rise of Private capital In the third largest economy in the world.

SRC was advised by UBS last November to split Toshiba into three, but the company was forced to back down when shareholders demonstrated vigorously.

A second plan, to split the company in two, was Defeated by shareholders Last month. Although she received rejection advice from shareholders, Toshiba said she maintains UBS as a consultant. Shareholders also rejected 3D’s rival offer to reopen takeover calls.

Last week, Bain promised the backing of the company’s major shareholder, Effissimo, and opened talks with other investors about a potential deal to move the 146-year-old private Japanese conglomerate.

Although Bain has not yet made an official offer, people familiar with the situation have said the U.S. private equity group is in talks with Japanese investors to join a buying consortium that will offer a “Japanese solution” to Toshiba’s troubles.

The fresh demands from 3D, outlined in a letter seen by the Financial Times, are putting pressure on the conglomerate’s new CEO Taro Shimada, Which promised to rebuild the board’s relationship with shareholders and lead Toshiba out of years of scandals. He is known from the inside as someone who was in favor of resuming talks with private capital over a purchase deal.

Another report by Ari Sugiora

Toshiba shareholder pushes for buyout talks with Bain and other private equity groups Source link Toshiba shareholder pushes for buyout talks with Bain and other private equity groups

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