Toshiba Corp shares jump 7% as rumours about a potential buyout finally circle after all the years of tension.

Toshiba Corporation seen its shares rise by 7% on Thursday, as rumour has it that a potential Japanese led bid worth $19 billion (2.8 trillion yen), could lead to foreign investors being bought out after all these years of tension (investing.com). 

According to Reuters, an association managed by a private equity firm ‘Japan Industrial Partners’ has acquired preferred status in round two of bidding. Apparently the firm has contacted various other Japanese firms to join their association. Kyodo news agency reported that Orix plans to enter while Chubu Electric Power is also considering. Additionally, Bloomberg News added that Baring Private Equity Asia and CVC Capital Partners are ALSO considering joining the group, sparking interest amongst investors.  

Toshiba, once a well-known empire, has been tarnished by governance scandals and accounting. In recent years turnaround attempts have failed due to management and activist shareholders. Last year the conflicts peaked when an investigation found that management had colluded with Japan’s trade ministry (investing.com).

Finally, Kyodo also reported that the Japan Industrial Partners association will contribute up to 1 trillion yen in equity, while the rest is likely to come from bank loans. However, financial talks are still underway and the offer value may be adjusted.