British private equity firm
The investment firm will discuss terms with the management of the Japanese electronics and infrastructure conglomerate and engage in talks with the Japanese government about screening the proposed acquisition, sources familiar with the matter said.
Toshiba has faced pressure from activist shareholders who invested in the conglomerate when it was struggling to get back on its feet, and taking the Japanese firm private could speed up management's decision-making, the sources said.
If the proposal goes through and CVC's tender offer is successful, it would help shield Toshiba from outside pressure from vocal shareholders and prevent their interference. But going private also raises the bar for Toshiba, a household name with a history dating back to 1875, to ensure transparency and proper governance.
"It is true we received a proposal, and we will discuss that at our board meeting," Toshiba President
Established in 1981, CVC has
Following media reports of the proposed buyout, Toshiba shares met a flood of buy orders on Wednesday to finish up 18.3 percent at a daily-limit high of
A buyer typically pays a premium in a tender offer, likely pushing the value of a full acquisition of Toshiba shares further above
The purchase of Toshiba, which has nuclear power and defense businesses, would need to be screened and approved by the Japanese government under the country's law regulating foreign investment in Japanese companies dealing with sensitive technology and products due to national security reasons.
Toshiba said in a statement that it received an initial proposal on Tuesday, adding that it will ask for more details and examine it "carefully."
"With regard to businesses that are key to our economy and society, we believe it's important to establish a management structure that can be stably sustained,"
Last month, Toshiba held an extraordinary meeting at the request of foreign activist investors. A proposal by
The fund called for a fresh investigation into whether Toshiba's general shareholder meeting last year was held fairly since shareholder services provider
Kurumatani, who joined Toshiba in 2018 as chairman and CEO, has seen shareholder support for him dwindle. At the general shareholders meeting in
In recent years, Toshiba has undergone sweeping restructuring after an accounting scandal in 2015, followed by the bankruptcy of its
It has exited from unprofitable TV, personal computer and
Although no formal decision has been made, CVC's potential buyout of Toshiba would match or surpass
Toshiba is now shifting its focus more to infrastructure and renewable energy for future growth.
"It would be meaningless to go private just to avoid the influence of activist shareholders," Akino said.
In January, Toshiba returned to the First Section of the
==Kyodo
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