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Toshiba’s investor Oasis was not impressed with CVC’s offer of $ 20 billion


© Reuters. Logo of Toshiba Corp. seen at the company’s facility in Kawasaki, Japan

By Junko Fujita

TOKYO (Reuters) – Hong Kong-based Oasis Management Fund’s Operations said CVC Capital’s $ 20 billion proposal to buy Toshiba (OTC 🙂 Private Corp is “much lower than fair value” and urged the Japanese corporation to seek other offers.

As an investor in Toshiba since 2016, the fund said a price of more than 6,200 yen ($ 56.54) per share for Toshiba would be appropriate, rather than the reported price of 5,000 yen / share. promissory note.

While Oasis understood that a bid was not required and should be properly considered for the benefit of all shareholders, the operating investor wrote to Toshiba’s board chairman, Osamu Nagayama, to express your concerns.

“If the company opens the bid, we believe there will be other contractors interested in buying Toshiba,” Oasis said in a letter viewed by Reuters on Tuesday.

American hedge fund Farallon Capital Management also asked Toshiba to seek multiple offers, but Oasis was the first to offer a reasonable price.

Shares in Toshiba have fluctuated a lot below CVC’s asking price after hitting a four-year high last week, with the share price closing at ¥ 4,595 on Tuesday.

Oasis does not disclose the size of its stake while Farallon is Toshiba’s third largest shareholder with a holding rate of about 6%, a source close to the site said.

Known for its transfers to Japanese companies to increase profits, Oasis recently helped promote the sale of the owners of the Tokyo Dome Corp baseball stadium to developer Mitsui Fudosan (OTC 🙂 in a $ 1.2 billion deal.

The letter Oasis sent to Toshiba also suggested that the company establish a special committee to discuss the CVC proposal as soon as possible, adding that CEO Nobuaki Kurumatani will be removed. this process because he is a former senior executive of CVC.

Separately, the Tokyo Stock Exchange said on Tuesday it had block trading 72 billion yen of Toshiba stock on Friday, accounting for about 3.4 percent of the company’s market value.

($ 1 = 109,6600 yen)

(Additional reporting by Hideyuki Sano, edited by Stephen Coates and David Goodman)

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