On Wednesday, local Toshiba said that in order to successfully acquire the Westinghouse Electric Company, a subsidiary of the UK government's nuclear fuel company, it has secured a commitment of two hundred million yen ($3.5 billion) in loans from two Japanese banks. . In this way, Toshiba avoided the choice of stock market financing.
Industry analysts said that Toshiba will be financially tight due to the acquisition, the world's fourth largest chip maker and the third largest notebook manufacturer Toshiba will therefore narrow its resource allocation.
Toshiba spokesperson Keisuke Ohmori said that two consortiums, SumitomoMitsuiBanking and Mizuho Corporation, will provide Toshiba with a reliable loan commitment of 200 billion yen. The spokesman said: "We have no plans to raise funds into the stock market." Toshiba said that these loans will be repaid to two consortia before the end of December this year. The company plans to repay these payments with its business income.
In Japan, Toshiba is the second largest electronics conglomerate in Japan after Hitachi. In February, it agreed to acquire Westinghouse Electric for $5.4 billion in order to improve its position in the nuclear industry, which has just recovered in the world. This price is about three times the price originally estimated by Westinghouse Electric. Toshiba said it expects to maintain 51% of the controlling stake in the combined Westinghouse Electric Company and the remaining 49% will be held by a minority of investors.
Toshiba plans to complete the acquisition in September this year. In the second half of the fiscal year, Westinghouse’s revenue will make Toshiba stronger. After the merger, Westinghouse Electric will become the world's largest nuclear reactor manufacturer. According to the energy generated, Westinghouse Electric's global market share will reach 28%, surpassing France's Areva.
Affected by the release of this news, Toshiba's stock rose 0.4% per share to 758 yen. The motor benchmark index for the Tokyo stock market fell by 0.6%. Sumitomo Mitsui Banking Corporation of Japan is the core business unit of Sumitomo Mitsui Financial Group, and Mizuho Corporate Bank is the core business unit of Mizuho Financial Group.
The authenticity of this information has not been confirmed by the international electrical network, for your reference only.
Industry analysts said that Toshiba will be financially tight due to the acquisition, the world's fourth largest chip maker and the third largest notebook manufacturer Toshiba will therefore narrow its resource allocation.
Toshiba spokesperson Keisuke Ohmori said that two consortiums, SumitomoMitsuiBanking and Mizuho Corporation, will provide Toshiba with a reliable loan commitment of 200 billion yen. The spokesman said: "We have no plans to raise funds into the stock market." Toshiba said that these loans will be repaid to two consortia before the end of December this year. The company plans to repay these payments with its business income.
In Japan, Toshiba is the second largest electronics conglomerate in Japan after Hitachi. In February, it agreed to acquire Westinghouse Electric for $5.4 billion in order to improve its position in the nuclear industry, which has just recovered in the world. This price is about three times the price originally estimated by Westinghouse Electric. Toshiba said it expects to maintain 51% of the controlling stake in the combined Westinghouse Electric Company and the remaining 49% will be held by a minority of investors.
Toshiba plans to complete the acquisition in September this year. In the second half of the fiscal year, Westinghouse’s revenue will make Toshiba stronger. After the merger, Westinghouse Electric will become the world's largest nuclear reactor manufacturer. According to the energy generated, Westinghouse Electric's global market share will reach 28%, surpassing France's Areva.
Affected by the release of this news, Toshiba's stock rose 0.4% per share to 758 yen. The motor benchmark index for the Tokyo stock market fell by 0.6%. Sumitomo Mitsui Banking Corporation of Japan is the core business unit of Sumitomo Mitsui Financial Group, and Mizuho Corporate Bank is the core business unit of Mizuho Financial Group.
The authenticity of this information has not been confirmed by the international electrical network, for your reference only.
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