Chubu Electric Power Company, Incorporated (TSE:9502) and leasing firm ORIX Corporation (TSE:8591) are considering investing in embattled Japanese technology conglomerate Toshiba Corporation (TSE:6502), informed sources said on September 18, 2022. The two Japanese firms are believed to be mulling their participation in a Japanese fund that is one of the four bidders set to advance to a second round of bidding to take over Toshiba. Each bidder will conduct due diligence and submit a renewed buyout proposal.
The result of the second round of bidding will come out later this month at the earliest. The four bidders are the Japanese fund created by Japan Industrial Partners Inc. and Japan Investment Corp., British investment fund CVC Capital Partners and its U.S. and Canadian peers, Bain Capital and Brookfield Business Partners. Brookfield has proposed a capital alliance that would keep Toshiba public, while the other three have proposed a buyout that would take the company private, according to the sources.
Chubu Electric, which has close ties with Toshiba in the business of nuclear and thermal power generation, is examining whether synergistic effects can be achieved through the buyout, according to a public relations official of the power company. As Toshiba's operations include nuclear power and defense, areas closely linked to Japan's national security, any buyout by a foreign investor will be subject to scrutiny under the foreign exchange law. This is why some consider that a Japanese bidder has an advantage.