The British private equity fund CVC Capital Partners has launched an offer on the Japanese group Toshiba, which according to the main Japanese business newspaper Nikkei is valued at 2,300 billion yen (about 20 billion euros). The Japanese conglomerate has confirmed that it has received an initial proposal which will be discussed by the board of directors today. CVC’s offer represents a premium of 30% on the current value of the shares of the company listed in Tokyo. Financial newspaper Nikkei revealed that CVC would consider recruiting other investors to participate in the acquisition. Toshiba intends to seek further clarification and prepare for careful consideration of the offer on which to make a further announcement in due course. According to analysts, the British financial giant’s strategy is based on the desire to make Toshiba private in order to drastically influence its corporate governance structure and accelerate its decision-making processes, seen by the market and investors as cumbersome and no longer in in line with the needs of the global market.
Toshiba chairman Nobuaki Kurumatani explained to the press that the group’s leaders will discuss the offer at a board meeting scheduled for later in the day. However, an offer from a non-Japanese company should be approved by the Tolyo government for national security reasons, as Toshiba also operates activities in the nuclear energy sector. Toshiba has in the past been hit by scandals with false accounting allegations and heavy losses related to its US nuclear unit. She was forced to sell her chip business to offset liabilities. After a painful restructuring, its earnings rebounded and the company returned to the prestigious first section of the Tokyo Stock Exchange in January.