Toshiba’s (OTCPK:TOSBF) (OTCPK:TOSYY) board recommended its shareholders to accept the ~¥2T buyout deal from a group led by Japan Industrial Partners and to tender their shares in the potentially upcoming tender offer to take the company private.
In March, the Japanese conglomerate confirmed that it accepted a buyout offer of ¥4,620/share from the private equity firm Japan Industrial Partners, which led the consortium.
Toshiba had noted that the consortium previously offered as much as ¥5,500/share, however the bid was lowered several times due to deteriorating market conditions, the difficulty in securing financing and the company’s reduced earnings outlook.
The company said on Thursday that the offer Price — which resulted from the only complete proposal obtained at the end of almost a year-long fully competitive process — is fair and reasonable and capable of recommendation to the shareholders to tender their shares.
Toshiba added that the offer price includes a reasonable premium compared to the market price of its shares prior to a letter from CVC Asia Pacific Limited to take the company private.
In addition, Toshiba noted that the book value of KIOXIA HD’s shares in the company’s consolidated accounts has fallen by ~¥49.5B since the March announcement.
The tender offer is expected to be launched in late July, according to a report from Reuters.