Saturday, February 24

Leading Role for Toshiba on Japanese Stock Exchange After Takeover Bid

Toshiba played a leading role at the Tokyo fair on Wednesday. The Japanese electronics group has received a takeover offer of approximately $ 20 billion from investor CVC Capital Partners, who wants to take the company off the stock exchange.


The mood in the central Asian markets was further restrained. Investors took it easy after the recent strong boom in global stock markets and looked forward to their quarterly figures.

The main index in Tokyo, the Nikkei 225, ended 0.1 percent in the plus at 29,730.79 points. Trading in Toshiba stock was halted due to the flow of buy orders and the reaching of the daily increase limit. The share would trade more than 18 percent higher on the basis of the buy orders. CVC’s offer is reportedly about 30 percent above Tuesday’s closing price.

Toshiba, which has struggled with accounting fraud in recent years, struggles with its nuclear power arm and has to sell part of its chip division to raise money, says it is studying the proposal.

Industry peers such as Fujitsu and Hitachi benefited from the takeover speculation around Toshiba and rose 1.7 and 1.8 percent. Sea transport company Nippon Yusen increased its profit forecast for the year and added 3 percent. Competitors like Kawasaki Kisen and Mitsui OSK Lines won 3.7 and 2.2 percent.

In Seoul, the Kospi was 0.4 percent higher in the meantime. Samsung fell 0.6 percent. The South Korean technology group expects its profit in the first quarter to increase by 44 percent compared to a year earlier. Samsung benefited, among other things, from strong sales of its new Galaxy S21 smartphone and other gadgets.

The group will publish the full quarterly report at the end of this month. In Hong Kong, investors returned after a short holiday period, and the Hang Seng index fell 0.7 percent. The main index in Shanghai lost 0.5 percent.

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