reuters.com/business/exclusive-bidders-weigh-up-7000-yenshare-offer-22-bln-toshiba-buyout-sources-2022-06-22
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TOKYO/HONG KONG, June 23 - Bidders for Toshiba Corp (6502.T) are considering offering up to 7,000 yen ($51.41) per share to take the troubled Japanese conglomerate private, three people familiar with the situation told Reuters, valuing the deal at about $22 billion.

Toshiba, which is exploring strategic options, said this month it had received eight initial buyout proposals and two for capital alliances that would see it remain listed. read more

The bidders are now discussing an offer price range of up to 7,000 yen a share with Toshiba's shareholders, the people said, representing up to a 27% premium to Toshiba's share price of 5,501 yen as of Wednesday's close.

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The conglomerate's shares rose as much as 6.5% on Thursday, compared with a 0.1% fall in the benchmark Nikkei average (.N225).

The offer price, if finalised, would value the chips to nuclear reactors conglomerate at 3 trillion yen ($22 billion), at the top end of the range.

A separate source said the range of offers was wide and various conditions have been attached.

Toshiba told Reuters it would not disclose details of the proposals.

A wide bid price range and conditionality suggests that some assets of Toshiba would need to be carved out, or spun out, Travis Lundy, Quiddity Advisors analyst who publishes on Smartkarma, wrote in a report.

If some assets are spun out, that would mean "a lower price for the rest of the basket", he wrote, adding the up to 7,000 yen per share price suggests that may be the top price in the initial round.

"While everyone probably needed to spend the time and effort getting into the first round, if due diligence and a worsening market environment start to make Toshiba a less interesting candidate for a particular bidder, they can bid to miss in Round 2, by lowering price."

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