Bain Capital promises no spin-off in Toshiba takeover bid

Asian Tech Press (Apr. 19) -- U.S. private equity firm Bain Capital committed not to break up Toshiba in its takeover bid.

Bain Capital said Tuesday that if it succeeds in acquiring Toshiba, it will keep the company whole and not split it up, and retain the current management team.

If the acquisition is successful, it would be the largest cross-border private equity deal in Japan and could pave the way for more corporate mergers and acquisitions in Japan in the future, analysts said. Previously, Japanese companies were very cautious about private equity firms.

"We would keep Toshiba's businesses together and refrain from any divestiture," Yuji Sugimoto, co-head of Bain Capital's private equity business in Asia, said in an interview Tuesday, "there would be no break-up."

Sugimoto also said that Bain Capital will focus on expanding Toshiba's business rather than cutting costs.

Bain Capital first floated the idea of buying Toshiba in March this year, but has yet to make a formal offer.

At the end of March, it was said that Bain Capital planned to acquire Toshiba in partnership with other Japanese companies, and planned to form alliances with local funds and other investors.

It's said that Bain Capital is currently preparing the take-private offer, which will be submitted to Toshiba once it is completed.

And the plan has already received support from Toshiba's largest shareholder, Singapore-based Effissimo Capital Management, which owns about 9.9% of the troubled Japanese tech giant.

Bain Capital is ready to work with the management team led by Taro Shimada, Toshiba's newly appointed CEO who took office early last month, to gain the support of management and employees, said Sugimoto.

He did not disclose this time what price Bain Capital is prepared to pay for Toshiba, but said the acquisition could cost as much as 2 trillion yen ($16 billion).

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