Scott Murdoch and Makiko Yamazaki

TOKYO/HONG KONG – Two Japanese firms, Japan Industrial Partners (JIP) or Polaris (NYSE.) Capital Group, are both considering participation in the bids for Toshiba Corp (OTC.) Corp.

Toshiba has suffered from accounting and governance problems since 2015. Last month, a committee was established to examine strategic options. This came after the shareholders rejected a plan to restructure.

Sources said that the funds are smaller than other global private equity companies and would have to work with each other. Because some assets, including nuclear power and defense equipment, are strategically important to Japan’s economy, local participation is crucial.

Because the subject is confidential, they declined to identify their sources.

However, it was unclear if JIP or Polaris had already collaborated with other funds.

They aren’t well-known outside of Japan but have played a key role in spinoffs and corporate carveouts for Japanese conglomerates.

JIP purchased Olympus’ camera business in Olympus, last year. Sony The 2014 acquisition of the laptop business by Group (NYSE:) Polaris purchased Fujitsu’s mobile phone company in 2018.

JIP couldn’t be reached for comment right away. Polaris representatives confirmed that they are considering this opportunity but refused to elaborate further.

Toshiba claimed that 10 potential investors signed confidentiality promises, but did not identify them. Monday is the deadline to submit initial proposals.

Toshiba spokesperson said Toshiba “intends provide transparent updates on our process to our shareholders. We will publicly announce both the number of non binding proposals received by potential partners as well as the outline of possible deal structures prior to the annual shareholders meeting in June”.

According to Takayuki Kobayashi (Japan’s economic security Minister), the Japanese government won’t block foreign investors buying Japanese industrial giants like Toshiba, provided that they follow rules regarding sensitive technology handling.