Home Topics Business Toshiba investor Oasis unimpressed by CVC's $ 20 billion offer

Toshiba investor Oasis unimpressed by CVC’s $ 20 billion offer

© 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)

Disclaimer: Fusion Media would like to remind you that the information contained on this website is not necessarily real-time or accurate. All CFDs (stocks, indices, futures) and forex prices are not provided by exchanges, but by market makers. Therefore, prices may not be accurate and may differ from the actual market price. This means that the prices are indicative and not suitable for trading purposes. Therefore, Fusion Media is not responsible for any trading losses you may incur as a result of using this data.

Fusion Media, or anyone involved with Fusion Media, assumes no liability for any loss or damage caused by reliance on the information contained on this website, such as data, offers, charts and buy / sell signals. Please inform yourself comprehensively about the risks and costs associated with trading in the financial markets. This is one of the riskiest forms of investment possible.


Please enter your comment!
Please enter your name here

Latest articles

Reservoir signs BRELAND for global publishing deal

New York-based Reservoir has signed platinum songwriter and artist Daniel Breland (aka BRELAND) to a worldwide publishing deal.The signing, which includes BRELAND's full catalog,...

How to wake up earlier

It's one of the most agreed-upon methods for productivity, and yet many of us just can't force ourselves to start our day earlier. ...


Hey fam! Welcome to the Gene F Vlog, the channel where we talk about my #startupexperience with my company, #MrSpeedy and talk about the...