An April 7 press release from Toshiba Corp. announced that, according to a Nihon Keizai Shimbun report, private equity firm CVC Capital Partners had made an acquisition proposal to Toshiba.
In the press release, Toshiba stated it had not made an announcement regarding the offer. However, it did confirmg Toshiba had received an initial proposal the previous day, and would ask for further clarification and give it careful consideration.
Bloomberg reported that, according to a Toshiba executive, the offer to Toshiba was about 5,000 yen per share, which would value Toshiba at about 2.28 trillion yen, or US$20.7 billion.
MarketWatch noted that the offer comes just a few weeks after a defeated attempt by activist shareholders for an independent probe into the company’s scandals, which include faulty accounting practices. It notes the takeover by a foreign owner would have to be approved by the Japanese government, while also speculating that the “current valuation of Toshiba and its many businesses could also lead to a break up of the Japanese company, which would help to extract value.”
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