Effissimo to sell Toshiba stake in JIP offer, source says

SINGAPORE-BASED Effissimo Capital Management, Toshiba’s largest shareholder, has decided to tender its 9.9 per cent stake in the US$14 billion takeover offer by Japan Industrial Partners (JIP), a source said on Friday (Sep 15), raising the odds of the bid succeeding.

JIP, a private equity firm, launched a 4,620 yen-per-share bid to take Toshiba private last month, a move that would put the electronics-to-power stations maker in domestic hands after years of battles with overseas activist shareholders.

The offer, which will end on Sep 20, needs at least two-thirds of shareholders to tender their shares for it to succeed.

Effissimo made the decision to tender its stake “as a result of dialogue with Toshiba and related parties including the tender offerer,” said the source with knowledge of the matter, who declined to be identified as news is not public.

“We welcome our shareholders to tender shares,” Toshiba said in a statement in response.

Other major shareholders, Elliott Management and Farallon Capital Management, both have their executives on Toshiba’s board which has unanimously approved the JIP takeover.

BT in your inbox

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign Up

Sign Up

Singapore-based fund 3D Investment Partners, previously Toshiba’s second-largest shareholder, revealed in a filing in March that it had cut its stake to 4.90 per cent from 7.20 per cent.

Sources have said top activist shareholders were eager to exit, even though the offer price was unsatisfactory.

Effissimo first invested in Toshiba in February 2017, when Toshiba was in the middle of crisis over massive losses in relation to its US unclear unit Westinghouse Electric.

SEE ALSO

JIP to launch 2 trillion yen tender offer for Toshiba on Tuesday

Japan chipmaker Rohm to invest 100 billion yen in Toshiba buyout fund

Toshiba board recommends shareholders support US$14 billion buyout

Toshiba posts 35% decline in full-year net profit

Toshiba board agrees to accept JIP's US$15.3 billion buyout proposal

More

It also participated in the 600 billion yen (S$5.5 billion) emergency capital raising in December 2017, which brought in 30-plus overseas investors including prominent activist shareholders such as Elliott and Third Point.