Toshiba chooses JIP-led group as preferred bidder for buyout

TOSHIBA granted a consortium led by Japan Industrial Partners (JIP) preferred bidder status for a buyout of the iconic Japanese firm, according to people with knowledge of the situation.

Private equity firm JIP was looking to acquire Toshiba in partnership with multiple domestic companies including Orix and Chubu Electric Power, they said. The Nikkei newspaper reported on the deal earlier. Toshiba considered that a sale to JIP would keep the company as one entity, according to the people.

Midori Hara, a spokesperson for Toshiba, declined to comment on the matter, saying to do so may undermine a fair process. JIP wasn’t immediately available to comment. Toshiba shares rose as much as 2.2 per cent in Tokyo.

The Japanese conglomerate has been seeking strategic proposals for its future, including potential buyout bids. It had targeted second-round offers by the end of September, people familiar with the process told Bloomberg last month. State-backed investment fund Japan Investment was leading a rival group to JIP, with other investors such as Bain Capital and MBK Partners in talks to be involved in its bid, the people said.

JIP is expected to have a month to negotiate with Toshiba, and it’s unclear if it will be able to agree on terms in that period, the Nikkei said. BLOOMBERG