Baring Private Equity Asia is considering joining a consortium led by Japan Industrial Partners Inc. for a buyout of Toshiba Corp., according to people familiar with the matter.
(Bloomberg) — Baring Private Equity Asia is considering joining a consortium led by Japan Industrial Partners Inc. for a buyout of Toshiba Corp., according to people familiar with the matter.
The Hong Kong-based investment firm is in talks with financial advisers as it evaluates the potential transaction, the people said, asking not to be identified as the matter is private. BPEA could join the JIP-led group as both an equity and debt investor, the people said.
Discussions are ongoing and the pan-Asian private equity fund — which itself is merging with Swedish investment firm EQT AB — could still decide against pursuing a deal, the people said.
Toshiba granted preferred bidder status to a consortium led by JIP for a buyout of the iconic Japanese firm, people familiar with the matter said this week. The Tokyo-based private equity firm is looking to acquire Toshiba in partnership with domestic companies including Orix Corp. and Chubu Electric Power Co. as well as global investment firms, they said. CVC Capital Partners is among those considering becoming part of the group, one of the people said.
Representatives for BPEA, CVC and JIP declined to comment. Midori Hara, a spokesperson for Toshiba, declined to comment on candidates or co-investors, saying to do so could undermine a fair process.
The Japanese conglomerate has solicited proposals to shape its future strategy, including potential buyout bids. Such a deal could be private equity’s largest ever in Japan. Aside from JIP, state-backed investment fund Japan Investment Corp. is leading a rival group, with other investors such as Bain Capital and MBK Partners in talks to be involved in its bid, Bloomberg News has reported.
BPEA in September raised $11.2 billion in total capital commitments in September for its eighth private equity fund, surpassing its $8.5 billion target and making it one of the largest ever funds raised by an Asian buyout firm. Founded in 1997 and led by Jean Eric Salata, the company has $22 billion of assets under management. Its merger with EQT is expected to close in the fourth quarter.
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