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On October 18, the financial website Forexlive said that it was a welcome sign for the Bank of England to see that the UK retail sales data maintained its growth for another month. In detail, the improvement in consumer activity was mainly driven by growth in department store sales (+1.9%) and other non-food store sales (+5.5%). In the latter, computer and telecommunications sales contributed the most. Is this perhaps the impact of the iPhone 16? At the same time, sales in food stores fell 1.9% from the previous month, almost the only drag. Retailers pointed out that abnormally bad weather and consumers continuing to cut back on luxury purchases were one of the reasons for the impact.Futures News on October 18, Mysteel data: 30 of the 64 blast furnaces of the national sample pig iron enterprises were shut down for maintenance, with a total maintenance volume of 7,165m³, and a weekly capacity utilization rate of 57.53%, a weekly decrease of 0.72% and a monthly decrease of 2.44%. The pig iron inventory in the factory was 385,100 tons, a weekly decrease of 10,000 tons.On October 18, today, the central bank announced the official launch of stock repurchase and increase in holdings re-loans. In principle, the interest rate of loans issued by financial institutions shall not exceed 2.25%, which can effectively stimulate the enthusiasm of listed companies and major shareholders to repurchase and increase their holdings of stocks. Market analysts pointed out that the loan interest rate of 2.25% is already a very low interest rate for listed companies and major shareholders, reflecting the central banks support for promoting the stable operation of the capital market. Reporters learned that the re-loan tool involves multiple links such as stock increase and repurchase, bank loans, and central bank re-loans. The central banks announcement emphasized that the loan funds of 21 financial institutions should be used specifically for stock repurchase and increase in holdings to ensure "special funds for special purposes and closed operation". Before the loan is fully repaid, cash withdrawals or external transfers are not allowed in the capital account. Industry experts said that bank credit funds cannot enter the stock market in violation of regulations, which is still a red line that financial supervision should adhere to.Futures News on October 18, Fubao Nonferrous Network released data showing that as of October 18, LME 0-3 aluminum discount was 37.11 US dollars/ton; domestic spot aluminum was quoted at 20,500 yuan/ton, down 260 yuan from yesterdays price; offshore RMB against the US dollar was 7.137 yuan. According to the research of Fubao Nonferrous Aluminum Research Team, the latest aluminum import profit and loss index was -747.5/ton.The main contract of lithium carbonate rose by more than 2.00% during the day and is now at 71,800 yuan/ton. The main contract of Shanghai tin fell by 2.00% during the day and is now at 257,700.00 yuan/ton.

Bidders assess bids valuing Toshiba at $22 billion or more - sources

Charlie Brooks

Jun 23, 2022 11:27


According to three sources cited by Reuters, bidders for Toshiba (OTC:TOSYY) Corp are considering offering up to 7,000 yen ($51.41) a share to take the struggling Japanese conglomerate private, valuing the deal at over $22 billion.


Toshiba, which is assessing its strategic options, stated this month that it has received eight initial takeover proposals and two capital partnership proposals that would allow it to remain publicly listed.


According to the sources, the bidders are currently exploring an offer price range of up to 7,000 yen per share with Toshiba's shareholders. This is a 27 percent premium over Toshiba's closing share price of 5,501 yen per share on Wednesday.


According to a third source, there is a vast selection of offers with several stipulations attached.


On Thursday morning in Tokyo, Toshiba shares climbed by 5.3%, outpacing the Nikkei average gain of 0.8%.


The chips-to-nuclear-reactors conglomerate would be valued at a maximum of 3 trillion yen ($22 billion) if the bid price is completed.


Toshiba notified Reuters that it would not disclose the specifics of its strategy.


KKR & Co (NYSE:KKR) Inc, Baring Private Equity Asia, Blackstone (NYSE:BX) Inc, Bain Capital, Brookfield Asset Management, MBK Partners, Apollo Global Management (NYSE:APO), and CVC Capital have reportedly submitted first bids.


They said that some of the bidders may form consortiums.


Bain, Blackstone, Brookfield, Baring, CVC, KKR, and MBK all refused to comment. Apollo did not immediately respond to a request for comment.


According to individuals who declined to be identified because they were not authorized to speak to the media, domestic funds, most notably Japan Investment Corp (JIC), and a number of significant stakeholders are examining their participation in the transaction.


JIC declined to comment.

WEAK YEN

If completed, the sale of Toshiba would be the largest in Japan since a consortium led by Bain sold Kioxia for $18 billion in 2018.


The conversations are taking place at a time when a weak yen continues to afflict the Japanese economy, endangering the business plans of Japanese firms and making them attractive takeover targets for foreign bidders.


On Wednesday morning, the yen reached a new 24-year low against the dollar, falling to 136.71.


According to two sources, of all the potential bidders, Bain has been the most "aggressive" in pursuing a purchase.


Even at 6,500 yen per share, a Japanese investment banker with knowledge of the transaction remarked that Toshiba's valuation was "very expensive."


Ultimately, he noted, the price must reflect how investors see Toshiba's 40 percent stake in unlisted chip producer Kioxia.


According to him, this gave Bain an advantage over other bidders because the private equity company possessed a majority stake in Kioxia, meaning it would influence the fate of the chipmaker, impacting Toshiba's value.


In April, after shareholders rejected a restructuring proposal backed by management, Toshiba, which has been beset by accounting and governance problems since 2015, appointed a special committee to find answers.


The company previously announced it will shortlist bidders for due diligence following its annual shareholders' meeting on June 28.

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