Toshiba brushes off renewed push from CVC on acquisition bid
21 April, 2021
Toshiba Corp on Tuesday brushed off a brand new missive from CVC Capital Partners about the global fund's proposal to acquire japan manufacturer, though it stopped short of outright rejecting it.
Toshiba said a letter from CVC that it received Monday was “extremely hard to evaluate.”
Tokyo-based Toshiba said the letter did not provide necessary details such as CVC’s capital structure or post-acquisition management policies and an assurance of compliance with local and foreign regulations. However the Japanese technology and energy giant didn't eliminate the offer, estimated to be worth 2 trillion yen ($18 billion).
Toshiba earlier said the CVC's initial proposal to take the business private had not been viable, though it promised to examine it.
The most recent letter “contained no specific and detailed information capable of detailed evaluation: it merely explained that CVC would step aside to await our guidance concerning whether a privatization of Toshiba would suit management’s and the Board of Directors’ strategic objectives," the Toshiba statement said.
The business has been struggling for a long time, saddled using its problem-laden nuclear power operations. It has sold its lucrative flash memory business to raise cash.
Nobuaki Kurumatani resigned as Toshiba president the other day, citing personal reasons he did not detail. He worked at CVC in Japan before taking his post as Toshiba's chief executive in 2018.
Some questions have been raised, both within and outside Toshiba, about the propriety of Kurumatani leading the board discussions on the proposed acquisition.
CVC, a European private equity firm located in Luxembourg, has committed practically $162 billion in funds, managing a lot more than 300 investors.
The Toshiba statement said it had been starting a new review of measures to improve its value and planned to appoint advisers to increase the transparency of its decision making.
Source: japantoday.com
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