Toshiba receives interest from 10 potential investors

TOKYO: Japan’s beleaguered Toshiba Corp said on Friday it has received interest from 10 potential investors ater soliciting buyout offers.

The conglomerate, long under pressure from activist shareholders, also announced a special dividend worth some $545 million, the second year in a row it has issued such a payout.

Toshiba, which has since 2015 been bedevilled by accounting and governance crises, set up a special commitee last month to explore strategic options including potential deals to go private ater shareholders voted down a management-backed restructuring plan.

Toshiba, whose businesses span nuclear energy, infrastructure, devices and semiconductors, said 10 potential investors had signed confidentiality pledges, without identifying them. They have been givendetailedfinancialinformationandthedeadline for submiting non-binding proposals is May 30.

It was not clear how many separate proposals Toshiba might end up entertaining.

“Everyone will be in to kick the tires,” said Quiddity Advisors analyst Travis Lundy who publishes on Smartkarma.

“Even if someone only wants a piece of the business, being involved in the first stage gets them the visibility to join a consortium for a second round formal bid,” he said.

US private equity firm Bain has sounded out multiple other Toshiba shareholders about teaming up as it prepares to make a buyout offer, sources have previously told Reuters. And Toshiba’s top shareholder, Singapore-based Effissimo Capital Management, has said it has agreed to sell its 9.9 per cent stake to Bain if it launches a tender offer.