On Thursday, shares in Toshiba (OTC:TOSYY) Corp rose following a report that a private equity firm Japan Industrial Partners-led group was looking at a USD 19 billion bid in a deal that could lead to foreign activist shareholders being bought out after years of tension.

The bid figure of 2.8 trillion yen cited by the media represents a premium of 26 per cent to Wednesday’s closing price. Media also reported that Japan Industrial Partners had contacted multiple Japanese firms.

Of these, Orix (NYSE:IX) Corp and Chubu Electric Power Co are considering joining. However, Japan Industrial Partners declined to comment on the same. While Orix said the company has been in talks with Japan Industrial Partners, Chubu Electric declined to comment.
Toshiba shares were up 7 per cent in afternoon trade, on track for their biggest one-day gain in more than a year. They have risen about 17 per cent this year.

It is to be noted that Toshiba has been weakened by accounting and governance scandals. Attempts to turn itself around have been overshadowed in recent years by a conflict between management and its many shareholders.

As per the reports, the consortium intends to put up about 1 trillion yen in equity, with the rest likely to come from bank loans, adding that financing talks were underway and the offer value could change, depending on future movements of Toshiba’s stock price.