UK fund makes Toshiba buyout offer

Agence France-Presse

Posted at Apr 07 2021 09:21 AM

UK fund makes Toshiba buyout offer 1
Toshiba Corp's CEO Nobuaki Kurumatani attends a news conference at the company's headquarters in Tokyo, Japan May 15, 2018. Issei Kato, Reuters/File Photo

TOKYO - A British private equity fund has proposed a buyout of Toshiba, the Japanese firm confirmed Wednesday, in a deal reportedly worth about $20 billion.

Toshiba confirmed the reports that CVC Capital Partners had come forward with an offer to acquire the company, and said its board would discuss the proposal.

Local media reported CVC was considering offering a 30 percent premium over group's current share price, aiming to take the Japanese electronics and engineering giant private.

The delisting is intended to produce faster decision-making by Toshiba's management, which has clashed with shareholders recently, reports said.

The move, if successful, would allow the firm to concentrate resources on renewable energies and other core businesses, reports added.

The Nikkei newspaper said CVC was considering recruiting other investors to participate in the acquisition.

Toshiba CEO and President Nobuaki Kurumatani told reporters Wednesday that "we received the proposal but we'll discuss it in a board meeting."

Toshiba's aggregate market value as of Tuesday stood at 1.74 trillion yen ($14 billion). If the takeover bid goes through at the reported 30 percent premium, the price tag would be around 2.3 trillion yen.

Toshiba has been hit by false accounting scandals and huge losses linked to its US nuclear unit.

It was forced to sell its profit-making chip sector to make up for huge losses.

Following painful restructuring, its earnings rebounded and the company in January returned to the prestigious first section of the Tokyo Stock Exchange.