Toshiba Corporation Closes ¥600 Billion Private Placement of New Shares

December 5, 2017

Toshiba Corporation, a Japanese diversified electric/electronic manufacturer that provides a wide range of products and services on a global basis in four business domains, Social Infrastructure, Energy, Electronic Devices and Digital Solutions, successfully closed a private placement of 2,283,105,000 new shares in the form of a third party allotment to institutional investors outside of Japan in reliance on Regulation S. The shares were offered at ¥262.8 per share for a total of ¥600 billion (approximately $5.33 billion).
 
Toshiba's balance sheet was negative due to the collapse of Westinghouse Electric Company, its then U.S. nuclear energy subsidiary. Toshiba would have been forced to delist its shares from the Tokyo Stock Exchange and the Nagoya Stock Exchange if Toshiba's balance sheet were to remain negative as of March 31, 2018. The successful completion of the private placement will allow Toshiba to remedy its negative consolidated balance sheet and to remain a public company. Subsequently, Toshiba intends to strengthen its revenue base, achieve stable growth in each of its business domain and recover its diminished financial base.
 
S&C advised client Goldman Sachs Japan, who acted as placement agent and financial adviser to Toshiba.

The S&C team was led by Izumi Akai and Keiji Hatano, along with Bryce Gray and Pamela Tsao.