Toshiba reported that it received a purchase offer from British investment fund CVC Capital Partners that could reach 2.3 trillion yen (about $20.9 billion). This situation shot up more than 18% of the company’s share price.
Toshiba’s president and CEO, Nobuaki Kurumatani, confirmed Wednesday that the company received the offer, which was discussed at a company board meeting held today.
CVC has proposed $20.9 billion to purchase Toshiba
CVC has proposed a premium of 30% over the current share price of the Japanese group, which could raise the value of the transaction to nearly 2.3 trillion yen ($20.9 billion).
CVC’s proposal would aim to speed up decision-making at a conglomerate that has often faced complaints from activist investors as it tries to recover from a series of scandals and heavy losses in recent years.
To carry out the transaction, authorization from the Japanese regulator is required. The Finance Ministry would have to review the bid in advance, under regulations implemented in 2020 that impose greater scrutiny of foreign investment in companies with businesses in certain areas.
Toshiba has been at the center of a succession of accounting scandals in recent years, which earned it warnings from Japanese regulators, and its financial problems have led it to divest its U.S. nuclear arm and its semiconductor subsidiary, once its most profitable division.
