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The transaction amount is as high as 20.8 billion U.S. dollars! CVC proposes to buy Toshiba off the market

CVC Capital Partners, a global private equity firm, is proposing to buy Toshiba for more than $20 billion and delist it.


The Nikkei Asian Review reported that Toshiba CEO and President Nobuaki Kurumatani said that company executives will discuss the CVC proposal at a board meeting later today.

It is reported that the bid considered by CVC is 30% premium to Toshiba's current stock price. Based on Tuesday's closing price, the value of the transaction will be close to 2.3 trillion yen ($20.8 billion). In addition, CVC is also considering recruiting other investors to participate in the acquisition.

Toshiba stated in a statement on Wednesday that the company received a preliminary proposal on Tuesday and will "request CVC for further clarification and serious consideration."

Over the past few years, Toshiba has suffered from scandals and suffered huge losses, and rights protection investors have continued to promote reforms. If it decides to delist, Toshiba will become one of the few examples of Japan’s corporate sector exiting the public market in order to avoid shareholder scrutiny.

According to the report, CVC will discuss relevant terms with Toshiba's management team, who will consider whether the proposal will benefit its shareholders before making a decision. Kurumatani is the first CEO hired from outside in 53 years. He has served as the vice president of Sumitomo Mitsui Financial Group and the president of CVC Japan.

If it can obtain regulatory approval, CVC plans to initiate a takeover offer. According to the law implemented last year, the Ministry of Finance needs to review the transaction in advance. The law imposes stricter scrutiny on foreign investment in companies in sensitive areas such as nuclear technology. If the transaction is successful, the huge pain that the Japanese corporate giant has experienced in front of the public will come to an end.