The original intention of Toshiba's management was that by November 7 potential participants in the buyout of shares of the corporation from the market will provide their letters of assurance, but the reluctance of creditors to allocate the necessary amount to the participants in the process may further delay preparations for this transaction.
Bloomberg reports that Toshiba's $16 billion assets are currently being bid for by two consortiums led by Japan Industrial Partners and Japan Investment Corp. respectively. Inflation and changes in the US monetary policy have made borrowing expensive, and so far lenders are not ready to finance the purchase of Toshiba shares by the mentioned consortia of investors. Among the Japanese credit institutions, only four organizations showed their interest in financing the transaction. At the same time, creditors are not yet ready to provide complete information about the structure of the upcoming transaction, so they cannot claim the prompt allocation of the necessary funds.
Such difficulties, according to informed sources, may push Toshiba to abandon the privatization in favor of selling only part of its assets. The leadership of the Japanese corporation has already done a lot to prepare for privatization. In June, a new board of directors was approved, and representatives of hedge funds interested in restructuring Toshiba's business were included in its composition. In the summer, the company's capitalization was estimated at $22 billion, now it has decreased to $16 billion, and so far there is no certainty that Toshiba's management in the current situation will not signal intentions to postpone privatization in order to receive a larger amount.
