Eight investors immediately announced their intention to participate in the privatization of ToshibaEnglish 

Eight investors immediately announced their intention to participate in the privatization of Toshiba

The deadline for applications from companies, foundations and banks wishing to participate in the purchase of Toshiba shares from the market expired this Monday. As we have already informed, ten candidates have submitted their applications, but only eight of them will resolutely participate in the privatization as such. Two more investors are ready to maintain the status of Toshiba public company on the condition of their share in the Japanese company.

Image source: Toshiba

As you know, in March, the shareholders’ meeting did not approve the corporate restructuring plan proposed by the management of Toshiba, which envisages the division into two independent companies. After that, under the pressure of the activists, the company expanded the composition of the board of directors and promised to present a new medium-term business development plan by June. At the same time, applications were submitted for participation in the privatization of the company or other changes in the capital structure for access to financial resources.

Since 2015, one of Japan’s oldest corporations has been plagued by fraudulent financial statements and scandals, forcing Toshiba to abandon US energy assets, a separate solid-state memory business. from the parent company in 2018 Later the foundation of Kioxia company was created.

Of the ten investors who have spoken so far this Monday, only eight are in favor of privatizing Toshiba with its net worth, the other two are willing to maintain the company’s status as a public company, but only if it receives a certain stake, Reuters explains. . So far, the financial details of the candidates have been revealed, as well as the possibility of consolidating the resources of several investors during the privatization. Now the management of the company has to review the received proposals in order to make its detailed financial reports available to the best candidates, the issue of strategic changes regarding those candidates will be discussed at the general meeting on June 28 this year.

So far, the corporation is ready to delight investors with promises to increase operating income almost fourfold from the previous fiscal year to the current rate of $ 4.6 billion by March 2031. Toshiba’s management considers digital services, the production of power electronics, and the development of a new generation of nuclear power reactors to be the main areas of development for the next ten years. In fact, it is the presence of assets in the field of nuclear energy that can become a serious problem in choosing to participate in the privatization of foreign investors. The Japanese government is likely to force several banks or state-owned corporations to take control of Toshiba if they are listed on the Tokyo Stock Exchange.

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