Orix confirms plan to invest $1.5 bln in Toshiba buyout

Japanese financial services firm Orix Corp said on Wednesday it would invest 200 billion yen ($1.48 billion) in a $15 billion buyout of Toshiba Corp.

Orix said in an earnings document that it would extend 100 billion yen for equity and 100 billion yen in mezzanine syndicated loans, in its first official confirmation of details of the investment plan for the deal.

The decision is based on its "positive views of Toshiba's corporate value and executability of management's reform plan," the company said in the document. Sources have said Orix' planned investment was trimmed from the initial 300 billion yen.


Toshiba's board in March accepted a 2 trillion yen ($14.81 billion) buyout offer from a group led by private equity firm Japan Industrial Partners. The group plans to start the tender offer in late July. ($1 = 135.0500 yen) (Reporting by Makiko Yamazaki, Editing by Louise Heavens)