Toshiba gets $19B buyout bid sending shares surging
The offer is a 26% premium to Toshiba's Wednesday closing price, which has sent shares heading to their biggest one-day gain in over a year
Toshiba Corp shares jumped on Thursday following a report that a domestic-led consortium is looking to buy the Japanese conglomerate for $19.1 billion.
A group of firms led by Japan Industrial Partners, a domestic private equity firm, had made the bid, according to the Kyodo news agency.
The bid comes to a 26% premium from Wednesday's closing price.
Shares of Toshiba jumped 7.5% putting them on track for their biggest one-day gain in more than a year.
TOSHIBA PLANS TO SPLIT INTO THREE FIRMS, SHAREHOLDER REACTION IN FOCUS
FILE PHOTO: The logo of Toshiba Corp. is seen at the company's facility in Kawasaki, Japan. (REUTERS/Kim Kyung-Hoon / Reuters Photos)
The consortium, which includes Chubu Electric Power, has received the right of first refusal in its bid for Toshiba, the Nikkei business daily previously reported.
Toshiba was reportedly exploring strategic alternatives for more than a year.
Reuters reported in August 2021 that Toshiba was in talks with four investment firms.
File photo shows the company logo of Toshiba Corp. displayed in front of its headquarters in Tokyo. ((AP Photo/Koji Sasahara, File) / AP Newsroom)
TOSHIBA IN TALKS WITH FOUR INVESTMENT FIRMS FOR STRATEGIC IDEAS
Toshiba said last month it had received multiple in-depth written indications of interest from potential partners.
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Toshiba outlined plans in November to break up into three independent companies by spinning off two core businesses. That plan was adjusted in February to a split into two companies before shareholders ultimately rejected the plan in March.
Reuters contributed to this report.