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ROHM plans to invest $2.16 billion to jointly acquire Toshiba
ROHM plans to invest $2.16 billion to jointly acquire Toshiba
Author：netwing Time：2023-07-31 Browse：
A few months ago, Toshiba had accepted a takeover offer from a consortium led by JIP (Japan Industrial Partners), with a transaction size of approximately 2 trillion yen (currently approximately 103.6 billion yuan). Other investors in the consortium include financial services group Orix, Chubu Electric Power, and Japan Post Bank. Sumitomo Mitsui Bank, Mizuho Bank, Mitsubishi UFJ Bank and other institutions have pledged to provide loans for this acquisition, with a total amount of approximately 2 trillion yen. Toshiba's board of directors has approved the offer and submitted a delisting plan to shareholders.
According to Nikkei Asia Review, renowned semiconductor manufacturer ROHM will provide a total of 300 billion yen (approximately 2.16 billion US dollars) in funding to join a consortium led by private equity firm Japan Industrial Partners in a proposed acquisition of Toshiba.
According to reports, ROHM has decided at a recent board meeting that if the tender offer is successful, it will invest 100 billion yen (approximately 715 million US dollars) in an investment fund led by JIP, and will also purchase 200 billion yen preferred shares issued by affiliated companies established for the acquisition.
ROHM stated in a statement that its main goal is to "participate in Toshiba's privatization and help solve their problems.".
ROHM and Toshiba both produce power semiconductor devices, which help reduce the power consumption of electric vehicles, appliances, and other products. Obviously, in the process of achieving a carbon free society, the role played by semiconductors is becoming increasingly significant. Especially in the automotive and industrial equipment markets, in order to reduce environmental loads and achieve carbon neutrality goals, technological innovation around electrification is advancing rapidly, and the demand for power semiconductors and analog semiconductors in the market is also increasing. In order to meet market demand, ROHM plans to continue expanding production capacity centered around SiC power semiconductors to ensure stable supply to customers, with the goal of occupying 30% of the global market share of silicon carbide power devices in the fiscal year 2025.
ROHM stated that there is no agreement with JIP or other companies regarding cooperation or participation in Toshiba management, but it stated that its business is "highly compatible" with Toshiba's semiconductor business and expressed interest in future collaborations.
Some industry observers believe that ROHM's investment has led to greater integration in the power device field, and many Japanese companies are entering this field.
At the shareholder meeting in June this year, Toshiba CEO Taro Shimada stated that his primary task in deciding on a tender offer was to consider the long-term value of the company. In recent years, Toshiba has had conflicts with radical shareholders who invested in the company when it raised additional capital of 600 billion yen in 2017. Toshiba aims to achieve greater management stability through JIP led acquisitions.
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