Sumary of Toshiba waits on more clarity over CVC buyout offer:
- TOKYO — Toshiba’s board has suggested it is waiting for further details of a privatization proposal from CVC Capital Partners, two days after Nikkei reported that the private equity firm was considering leading a $20 billion buyout of the Japanese engineering conglomerate..
- In its most detailed response so far, the company’s board chair Osamu Nagayama said CVC’s proposal was “completely unsolicited”.
- “[The] Toshiba board will conduct careful review of the initial proposal when it is further clarified in the future,”.
- A successful private equity-led bid for Toshiba would be one of the biggest such buyouts since the 2008 financial crisis and would remove one of Japan’s biggest industrial names from the Tokyo Stock Exchange..
- It comes at a time when private investor interest in listed Japanese corporations is increasing, with Nikkei also reporting this week that Bain Capital is in pole position to buy Hitachi’s stake in its separately-listed metals unit..
- Toshiba indicated that CVC’s proposal will also be reviewed under the Foreign Exchange and Foreign Trade Act of Japan, or FEFTA, which regulates equity purchases by foreign entities in companies deemed critical to Japan’s national security….