A key element of our strategy has been the thesis that parent-child subsidiaries will be collapsed by way of either buy-ins or buy-outs.
We have c. 25% of the portfolio exposed to this theme. We own Toshiba Plant (c.6% of portfolio) and Nuflare Technology (c.4% of portfolio), both are subsidiaries of Toshiba Corporation.
This morning Toshiba Corporation issued a press release confirming that they are considering the “possibility of converting the companies into wholly owned subsidiaries.” This is encouraging news, see here for the full press release.
For the full release, click here.