Toshiba Placing Shares to Raise Cash

Toshiba has arranged a private share placing that will raise ¥600 billion ($5.33 billion) which should enable the company to avoid a delisting of its stock from the Tokyo Stock Exchange at the end of its financial year.

Analyst Comment

The use of a private placement is because a public offering would be difficult in the current circumstances. Financial analysts have pointed out that the investors in the placement include some that can be described as ‘activist investors’, so this action may solve a short term problem, but might add to the management issues in the longer term. I get the sense of sharks circling! (BR)