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Toshiba’s Preferred Bid Delayed Amid Loan Uncertainty, Sources Say

  • Banks may not decide on loans to JIP group until mid-December
  • Consortium’s offer could value Toshiba at 2.2 trillion yen

A buyout deal to potentially take Toshiba Corp. private is taking longer than anticipated as banks haven’t yet decided whether to extend loans to the company’s preferred bidding group, according to people familiar with matter.

Banks including Sumitomo Mitsui Banking Corp. are considering issuing commitment letters for loans to a consortium led by Japan Industrial Partners Inc. and aren’t expected to make a decision until mid-December, which is later than planned, the people said. The lenders are reviewing the JIP-led group’s plans for Toshiba’s business, and to assess whether the loans will be redeemed on schedule, the people said, asking not to be identified as the information is private.