© Reuters. The Toshiba Corp. logo can be seen at the company’s factory in Kawasaki, Japan
From Junko Fujita
Hong Kong (Reuters), Hong Kong-based activist fund Oasis Management denies CVC Capital’s $ 20 billion proposal to take Toshiba (OTC 🙂 Corp private “is well below fair value” and has urged the Japanese conglomerate to obtain other offers.
The fund, which has been investing in Toshiba since 2016, said a price of more than 6,200 yen ($ 56.54) per share would be reasonable for Toshiba, rather than the reported offering of 5,000 yen per share.
While Oasis understands that the offer was not solicited and due consideration should be given to the benefit of all shareholders, the activist investor wrote to Toshiba CEO Osamu Nagayama to express his concerns.
“If the company is open to bids, we believe there would be other bidders interested in the takeover of Toshiba,” Oasis said in the letter Reuters saw on Tuesday.
The US hedge fund Farallon Capital Management has also asked Toshiba to obtain several offers. However, Oasis is the first to offer what it believes is a fair price.
Toshiba stock traded well below CVC’s likely offer price after hitting a four-year high last week. The stock closed at 4,595 yen on Tuesday.
Oasis is not disclosing the size of its stake, while Farallon is Toshiba’s third largest shareholder with a stake of around 6%, a source close to the matter said.
Known for offering deals to Japanese companies to increase ROI, Oasis recently contributed to the $ 1.2 billion sale of the Tokyo Dome Corp ballpark owner to developer Mitsui Fudosan (OTC 🙂 to advance.
The Oasis letter to Toshiba also suggested that the company set up a special committee to discuss the CVC offer as soon as possible. Chief Executive Nobuaki Kurumatani should be expelled from the process as he is a former senior CVC manager.
Separately, the Tokyo Stock Exchange announced on Tuesday that there had been block deals of 72 billion yen Toshiba shares on Friday, roughly 3.4% of the company’s market value.
($ 1 = 109.6600 yen)
(Additional coverage by Hideyuki SanoEditing by Stephen Coates and David Goodman)
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