Toshiba Gets Deal Proposal That Could Be Worth More Than $20 Billion
Toshiba said it would seek more details from CVC Capital Partners
Japan’s Toshiba Corp. TOSYY 22.37% said Wednesday it received a proposal for acquisition from private-equity firm CVC Capital Partners, in a deal that could be valued at more than $20 billion if completed.
Toshiba said it would seek further details about the offer and consider the proposal carefully.
Toshiba’s market capitalization as of Tuesday’s close was slightly higher tha ¥1.7 trillion, equivalent to $15.8 billion. The Nikkei newspaper said CVC was offering a 30% premium, suggesting the proposal would value Toshiba at slightly more than $20 billion.
CVC declined to comment.
Toshiba shares on the Tokyo Stock Exchange weren’t traded Wednesday morning because of a flood of buy orders even at the upper end of the day’s trading range.
Some Toshiba shareholders have questioned its corporate governance recently. At a special meeting in March, shareholders approved a proposal by Effissimo Capital Management Pte. to appoint investigators to examine whether voting at a shareholders’ meeting last year was conducted fairly.
Foreign shareholders have taken a growing role at the Japanese industrial conglomerate since it raised billions of dollars in 2017 to bolster its balance sheet. That followed the bankruptcy of its U.S. nuclear subsidiary, Westinghouse Electric Co.
Toshiba Chief Executive Nobuaki Kurumatani served as chairman of CVC’s Japan unit before joining the company.
Toshiba has shrunk considerably since an accounting scandal broke out in 2015. It sold a controlling stake in its flash-memory unit, while retaining a minority stake, and it has shed medical, consumer-electronics and appliance businesses to focus on industrial areas such as energy and infrastructure.