Japanese industrial conglomerate Toshiba Corp. is looking into a $20 billion offer from CVC Capital Partners to take it private, according to Reuters.
- Toshiba in a statement said it received an initial proposal, and it will ask further clarification and give it careful consideration. It did not elaborate.
- The company’s board, including Chief Executive Nobuaki Kurumatani who joined Toshiba from CVC, and Senior Adviser Yoshiaki Fujimori, discussed the proposal on Wednesday.
- CVC is considering a 30% premium over Toshiba’s current share price in a tender offer, putting the value of the deal at nearly 2.3 trillion yen or $21 billion. Toshiba shares closed Tuesday at 3,830 yen.
- The deal will face regulatory review as Toshiba is among a handful of companies able to build nuclear reactors, and manufactures other sensitive equipment such as lithium-ion batteries, for Japan’s military submarines.
- The company’s management has been under pressure from activist funds after it sold 600 billion yen of stock to dozens of foreign hedge funds. It was hit by a crisis stemming from the bankruptcy of its nuclear power unit in the United States in 2017.