CVC's move is seen as a de facto withdrawal from its plan to acquire Toshiba following an abrupt leadership change at the Japanese industrial conglomerate, according to sources familiar with the matter.
CVC had expected to submit a detailed proposal but Toshiba said it received the letter on Monday that contained "no specific and detailed information capable of detailed evaluation."
Toshiba quoted CVC as saying it will "step aside to await your guidance as to whether a privatization of Toshiba will suit management's and the board of directors' strategic objectives."
The development would cap weeks of turmoil sparked by CVC's proposal on
The buyout proposal came only months after Toshiba returned to the First Section of the
"We currently believe that being a publicly traded company provides a stable equity structure suitable for enhancing long-term value creation, and by taking advantage of the listed status it will lead to corporate value enhancement," Toshiba said in a statement.
The abrupt departure of President and CEO
The proposal had met opposition from some of the Toshiba board who viewed it as an attempt by Kurumatani, who once serve as chairman of CVC's Japanese unit, to defend himself and protect the conglomerate from activist shareholders dissatisfied with him.
Kurumatani faced falling support from shareholders that raised uncertainty over his reappointment.
"While CVC contends that our shareholder structure has adversely affected our corporate value, the board does not believe this to be the case," Toshiba said in the statement, adding it is "proud" of the hard work that paved the way for its return to the TSE's First Section.
Toshiba has become leaner after sweeping restructuring in the aftermath of the accounting scandal and 2017 bankruptcy of its
The potential purchase of Toshiba, whose business portfolio includes nuclear power and defense equipment, needs to pass screening by the Japanese government for national security reasons.
==Kyodo
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