Japan Industrial Partners (JIP), the favored bidder to acquire Toshiba Corp, is expected to execute a credit arrangement with lenders for approximately 1.4 trillion yen ($10.6 billion) this week, according to a report by the Yomiuri newspaper.
In mid-afternoon trading, Toshiba’s stock price was up 5% due to the news.
The loans include a 200 billion yen commitment line, according to the report. It was stated that Sumitomo Mitsui Banking Corp (8316.T) and Mizuho Bank (8411.T) will each give between 400 billion and 500 billion yen.
Toshiba stated in a letter to shareholders last week that it hoped to achieve an agreement with potential partners as quickly as possible, while sources told Reuters JIP was moving closer to securing bank finance.
The transaction is anticipated to value the industrial group at approximately 2,2 trillion yen, although the Nikkei business newspaper claimed over the weekend that JIP could reduce the valuation to less than 2 trillion yen.
Orix Corp (8591.T), Rohm Co Ltd (6963.T), and Japan Post Bank Co (7163.T) are among the Japanese corporations that are likely to join JIP in its offer, contributing a combined 1 trillion yen, according to sources.