According to a statement by Toshiba Corp. (6502), one of its key shareholders is calling for the consideration of other offers from potential suitors following CVC Capital Partners’ buyout bid of $20 billion.
US hedge fund Farallon Capital Management said that the Japanese company should consider “the privatisation proposal in a sincere manner through a fair process that includes a proactive market check and formation of an independent special committee.”
The shares of Toshiba Corp closed higher for a third consecutive trading session in Tokyo on Wednesday. The stock went up 5.77% (JPY 265.0) to JPY 4,860.0, after touching an intraday high at JPY 4,975.0, or a price level not seen since April 23rd 2015 (JPY 4,977.0).
The company shares have risen 68.46% so far this year, following a 22.13% loss in 2020.
According to Farallon, the privatization of Toshiba Corp would lead to better corporate governance and capital allocation by “further aligning the interests of shareholders and management.”
Farallon is Toshiba’s third-largest shareholder having a stake of nearly 6%. It is also the first large investor to publicly address CVC’s unsolicited offer of JPY 5,000 ($45.85*) per share.
*1 US Dollar equals 109.04 Japanese Yen
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