Toshiba shares jumped over 6% after Bain Capital received support from the company’s biggest shareholder on a possible take-private deal, according to a report by FT on Friday.

  • The US private equity firm is projected to be in a position to present a formal proposal to Toshiba soon and has received support for a deal from the company’s top shareholders.
  • A buyout deal for Toshiba has been in the offing among its shareholders for 12 months. Some argued that the conglomerate deserves a valuation of more than $20 billion.
  • The strong support for Bain by Effissimo Capital Management, Toshiba’s biggest shareholder, intensifies pressure on the Japanese firm to actively consider buyout offers from private equity-led consortiums.

The Singapore-based fund Effissimo disclosed an agreement to sell its 9.9% equity holdings in Toshiba if Bain presented an offer that met regulatory approval. Toshiba up +6.45%