Japan: Toshiba Will be Purchased by Japan Industrial Partners For $15 billion

Japan Industrial Partners Inc. (JIP), a Japanese investment firm, will take Toshiba private. Last week, the Japanese conglomerate revealed that TBJH Inc., an indirect subsidiary of JIP, would buy out all of the company's shares on the Tokyo and Nagoya Stock Exchanges and take the business private. The WSJ, which broke the news, notes that the deal has a $15 billion estimated value. Despite the cost being about 10% more per share than its present value and "below the lower bound of the share price bracket per share as determined by UBS Securities," Toshiba's board of directors has approved the proposal, the company said in its announcement of the offer. 

Toshiba still owns a stake in the memory chip company Kioxia even though it has sold off several business divisions. There are many subsidiaries in the deal structure. TBGP, Inc., a wholly owned division of JIP, owns all of the stock in TBJ. According to the terms of the agreement, Brick Lane Partners will help another JIP subsidiary, an investment vehicle called TB Investment Limited Partnership (TBLPS), acquire TBJ. In the transaction, TBLPS will collaborate with the Related Fund as well. 

Four JIP funds, 17 Japanese companies, and six Japanese financial institutions comprise TBLPS. The Related Fund comprises international funds from Japanese institutional investors and overseas cooperative funds from JIP. JIP was founded in November 2002 to buy and restructure businesses, emphasizing the divisions of bigger businesses. Previous investments have gone to Hitachi's Alaxala telecom division, NEC's Biglobe ISP, and Sony's VAIO laptop division.