A source revealed on Friday that the largest shareholder of Toshiba (6502.T), Effissimo Capital Management, has decided to tender its 9.9% holding in the $14 billion acquisition offer made by Japan Industrial Partners (JIP). This decision increases the likelihood that the bid will be successful.
Last month, a private equity firm, JIP, proposed acquiring Toshiba for 4,620 yen per share. If successful, this move would place the electronics-to-power station manufacturer back in Japanese hands, ending years of conflict with activist shareholders from other countries.
For the offer, valid until September 20th, to be successful, at least two-thirds of shareholders must tender their shares.
Effissimo, a company based in Singapore, decided to tender its interest “as a result of dialogue with Toshiba and related parties including the tender offerer,” according to a source with knowledge of the subject who declined to be identified because the news is not public. Effissimo’s decision to present its stake came about “as a result of dialogue with Toshiba and related parties including the tender offerer.”
In response to the criticism, Toshiba said, “We welcome our shareholders to tender shares.”
Elliott Management and Farallon Capital Management are two more big shareholders with executives serving on Toshiba’s board of directors, which has unanimously approved the JIP merger.
In March, the firm known as 3D Investment Partners, based in Singapore and was formerly Toshiba’s second-largest stakeholder, disclosed in a filing that it had decreased its investment to 4.90 percent from 7.2 percent.
According to various sources, senior activist shareholders were willing to quit the company despite an insufficient offer price.
Effissimo made its first investment in Toshiba in February 2017 while the company was amid a crisis caused by enormous losses related to its subsidiary unit in the United States, Westinghouse Electric.
In addition, it took part in an emergency capital-raising effort in December 2017 worth 4.07 billion dollars and 600 billion JPY. This effort attracted more than 30 investors from other countries, including notable activist shareholders such as Elliott and Third Point.
