Toshiba shares jump on report of possible $19b buyout

Shares in Toshiba Corp surged on Thursday following a report that a domestic investor-led group was looking at a $19 billion bid in a deal that could lead to foreign activist shareholders being bought out after years of tension.

A consortium led by private equity firm Japan Industrial Partners has been given preferred bidder status in the second round of bidding, two sources familiar with the matter told Reuters.

The bid figure of 2.8 trillion yen cited by the Kyodo news agency represents a premium of 26 per cent to Wednesday’s closing price. Japan Industrial Partners has contacted multiple Japanese firms, sources have said.

Of these, Orix Corp plans to join the consortium, while Chubu Electric Power Co is also considering joining, said another source familiar with the matter.

Japan Industrial Partners declined to comment. An Orix spokesperson said the company has been in talks with Japan Industrial Partners, while Chubu Electric has declined to comment.

Bloomberg News reported that Baring Private Equity Asia and CVC Capital Partners are also considering joining the consortium. Baring and CVC declined to comment.

The fund has been involved in corporate carve-outs and spin-offs from Japanese conglomerates. It bought Olympus Corp’s camera business last year and Sony Group’s laptop computer business in 2014.