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TOSHIBA sells KONE holding for approx. US$ 0.95 billion

Toshiba sells its 4.6% holding in Finnish elevator company KONE

by Gerhard Fasol

TOSHIBA sells KONE holding – fall-out from Toshiba’s accounting issues

Toshiba
Toshiba

TOSHIBA sells KONE holding: In the wake of Toshiba’s accounting issues, Toshiba announced the sale of its 24,186,720 shares, corresponding to a 4.6% holding in Finnish elevator company KONE for EURO 864.7 million (YEN 118 billion, US$ 0.95 billion).

Toshiba Elevators and Building Systems Corporation (TELC) and KONE had entered into a mutual capital investment alliance and exchange of Directors in December 2001.

On June 12, 2015 Toshiba announced a restatement of accounts, and announced the installment of an independent 3rd party committee headed by a former Chief Prosecutor of the Tokyo High Court. On July 20, 2015 the independent 3rd party committee announced income corrections with a total value of YEN 151.8 billion (US$ 1.22 billion).

Toshiba Elevator and Building Systems Corporation (TELC)

Toshiba Elevator and Building Systems Corporation (TELC) is a subsidiary of Japan’s Toshiba Corporation, established on February 16, 1967, the first escalator was installed in 1966, and the first elevator in 1967.

Toshiba Elevators produces advanced elevators, such as double decker elevators.

TELC has sales of approx. YEN 120 billion (US$ 1.2 billion) per year, and employs about 4700 people.

KONE

KONE was founded in 1910. KONE’s annual sales are on the order of EURO 7 billion, and KONE employs about 47,000 people. KONE’s shares are listed on NASDAQ OMX Helsinki Exchange.

Japan electronics industries – mono zukuri.

Copyright (c) 2009-2015 Eurotechnology Japan KK All Rights Reserved

Categories
Energy Japanese investments in EU

Toshiba acquires 60% of NuGeneration Ltd

Toshiba acquiring an additional 10% of NuGeneration

by Gerhard Fasol

NuGeneration becomes a joint-venture between Toshiba (60%) and GDF Suez (40%)

In December 2013, Toshiba purchased 50% of NuGeneration Ltd from Iberdrola (of Spain) for UKL 85 million (US$ 146 million).

On June 30, 2014, Toshiba announced to purchase an additional 10% of NuGeneration Ltd from GDF Suez.

Thus, NuGeneration becomes a joint-venture between Toshiba (owning 60% of NuGeneration) and GDF Suez (owning 40% of NuGeneration).

NuGeneration Ltd (NuGen)

NuGeneration Ltd. (NuGen) owns an option to purchase the 190 hectare Moorside site, located to the north of Sellafield, from the UK Nuclear Decommissioning Agency.

NuGeneration plans to build a 3.4 GigaWatt nuclear power station using three AP1000 reactors built by Westinghouse. Westinghouse is owned by Toshiba (87%), by Kazakhstan based Uranium and nuclear fuel producer KazAtomProm (10%) and the Japanese engineering company IHI (3%).

When finished, NuGeneration’s Moorside nuclear power plant is expected to deliver about 7% of UK’s electricity.

Two factors drive Toshiba to acquire a majority holding of NuGeneration (NuGen):

  1. the great uncertainty of the future of nuclear power in Japan following the Fukushima nuclear accident
  2. Toshiba’s commitment to nuclear power – and dependence on nuclear power construction following the acquisition of the majority of Westinghouse

Japan electronics industries – mono zukuri.

Copyright (c) 2014 Eurotechnology Japan KK All Rights Reserved

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Energy

Toshiba acquires 50% of nuclear power generator NuGeneration

Toshiba acquires 50% of NuGeneration for UKL 85 million

by Gerhard Fasol

NuGeneration acquires 50% stake in NuGeneration from Spain’s Iberdola

In December 2013, Toshiba purchased 50% of NuGeneration Ltd from Iberdrola (of Spain) for UKL 85 million (US$ 146 million), making NuGeneration a 50%/50% joint venture between Toshiba and GDF Suez.

NuGeneration Ltd (NuGen)

NuGeneration Ltd. (NuGen) owns an option to purchase the 190 hectare Moorside site, located to the north of Sellafield, from the UK Nuclear Decommissioning Agency.

NuGeneration plans to build a 3.4 GigaWatt nuclear power station using three AP1000 reactors built by Westinghouse. Westinghouse is owned by Toshiba (87%), by Kazakhstan based Uranium and nuclear fuel producer KazAtomProm (10%) and the Japanese engineering company IHI (3%).

When finished, NuGeneration’s Moorside nuclear power plant is expected to deliver about 7% of UK’s electricity.

Two factors drive Toshiba to acquire a 50% share of NuGeneration (NuGen):

  1. the great uncertainty of the future of nuclear power in Japan following the Fukushima nuclear accident
  2. Toshiba’s commitment to nuclear power – and dependence on nuclear power construction following the acquisition of the majority of Westinghouse

Japanese investments in UK nuclear power generation

Toshiba’s investment in NuGeneration is the second large Japanese investment in UK nuclear power generation, following Hitachi’s acquisition of Horizon Nuclear Power from Germany’s RWE and EON Ag.

While Germany has decided to exit nuclear power with the “Energiewende”, the future of nuclear power in Japan is unclear – unlike in Germany, at the moment all Japanese nuclear power stations are switched off.

Interestingly Japanese and German companies react in opposite ways regarding the future of nuclear energy: German companies RWE and EON AG exit nuclear energy, while Toshiba and Hitachi grasp the opportunities and acquire nuclear power planning companies NuGen and Horizon Nuclear Power.

Japan electronics industries – mono zukuri.

Copyright (c) 2014 Eurotechnology Japan KK All Rights Reserved

Categories
Energy FDI Japanese investments in EU M&A Science & Technology

Landis+Gyr acquired by Toshiba and The Innovation Network Corporation of Japan (INCJ)

Landis+Gyr to become “independent growth platform” within the Toshiba Group for smart meters and smart grid

by Gerhard Fasol

Landis+Gyr acquired by Toshiba (60%) and Innovation Network Corporation of Japan (40%) for US$ 2.3 billion

Landis+Gyr acquired by Toshiba and The Innovation Network Corporation of Japan: this acquisition was finalized with a shareholder’s and share purchase agreement between Toshiba and INCJ and Landis+Gyr, announced on 25 July 2011.

Initially, on 19 May 2011, Toshiba had announced the 100% acquisition of Landis+Gyr by Toshiba alone for US$ 2.3 billion including assumption of debt. Apparently, The Innovation Network Corporation of Japan entered this partnership sometime between May and July 2011 as an additional investor.

Toshiba established a Special Purpose Vehicle (SPV):

  • Toshiba invests: US$ 1.02 billion corresponding to 60% of equity
  • INCJ invests: US$ 0.680 billion corresponding to 40% of equity

In addition, Toshiba assumed Landis+Gyr’s net debt of US$ 600 million, thus the total cost to Toshiba is:

  • 60% equity in SPV: US$ 1.02 billion
  • assumption of Landis+Gyr net debt: US$ 0.6 billion
  • total acquisition cost to Toshiba: US$ 1.62 billion

The Innovation Network Corporation of Japan (INCJ) invested US$ 680 million into this SVP, acquiring 40% of the SVP’s equity.

Landis+Gyr – “manage energy better”

Landis+Gyr was founded in 1896 as Elektrotechnisches Institut Theiler & Co in Zug, Switzerland by Richard Theiler. In 1904, Richard Theiler appointed the engineer Heinrich Landis as his successor. Heinrich Landis partnered with Dr. Karl Heinrich Gyr in 1905, and the company changed its name to Landis & Gyr in 1905.

In 1998 Landis & Gyr was acquired by Siemens, and then again spun out in 2002 with the new version of the company name: Landis+Gyr.

Landis+Gyr produces smart meters, smart grid equipment and related technology and services, with the mission to “manage energy better”.

Landis+Gyr’s customers are mainly energy, gas and electricity utility companies throughout the world for their smart meter and smart grid networks.

The Innovation Network Corporation of Japan (INCJ)

The Innovation Network Corporation of Japan (INCJ) is an investment fund established on 27 July 2009 as a public-private partnership between the Japanese Government and 26 major Japanese corporations temporarily for 15 years.

Investment capability:

  • Capitalization: YEN 300 billion (=approx US$ 3 billion)
    • Japanese Government: YEN 286 billion
    • 26 corporations: YEN 14 billion
  • Japanese Government guarantees: YEN 1800 billion (=approx US$ 18 billion)
  • Total investment capability: YEN 2100 billion (=approx US$ 21 billion)

INCJ has made a range of investments, the largest investment (YEN 200 billion = approx. US$ 2 billion) is in Japan Display.

In addition to the Japanese Government, 26 investors (total YEN 14 billion) are:

  • Asahi Kasei Corporation
  • Canon Inc.
  • Osaka Gas Co., Ltd.
  • Sharp Corporation
  • The Shoko Chukin Bank, Ltd.
  • Sumitomo Chemical Co., Ltd.
  • Sumitomo Corporation
  • Sumitomo Electric Industries, Ltd.
  • Sony Corporation
  • Takeda Pharmaceutical Company Limited
  • Toshiba Corporation
  • TOYOTA MOTOR CORPORATION
  • JGC Corporation
  • Development Bank of Japan Inc.
  • Panasonic Corporation
  • East Japan Railway Company
  • Hitachi, Ltd.
  • Marubeni Corporation
  • Mizuho Bank, Ltd.
  • Sumitomo Mitsui Banking Corporation
  • Mitsubishi Chemical Holdings Corporation
  • Mitsubishi Heavy Industries, Ltd.
  • Mitsubishi Corporation
  • The Bank of Tokyo-Mitsubishi UFJ, Ltd.
  • GE Japan Corporation
  • JX Nippon Oil & Energy Corporation

Toshiba

Toshiba is one of Japan’s eight top electronics group, which we analyze in our report “Japan’s electronics industries: mono zukuri

Japan electronics industries – mono zukuri.

Copyright (c) 2011 Eurotechnology Japan KK All Rights Reserved