Japanese firm Toshiba said Wednesday it would give “careful consideration” to a $ 20 billion offering led by global private equity group CVC Capital Partners, with a 30% premium over the troubled conglomerate’s share price. . If finalized, the deal would come three weeks after Toshiba’s management suffered an unprecedented defeat by activist investors at an extraordinary shareholders meeting, who voted in favor of an independent investigation into the recent past tainted by scandals in the company. Activist investors led by Singapore’s Effissimo Capital Management and US-based Farallon Capital had criticized what they called “crackdown” at the company’s shareholders meeting last year, which was to examine their criticism of Toshiba’s chief executive. , Nobuki Kurumatani. CVC has declined to comment on the offering, first reported by Nikkei Asia. Toshiba shares rose 18% on Wednesday before operations in Tokyo were suspended due to an influx of “buy” orders. Kurumatani, 63, served as a director of CVC in Japan before joining Toshiba 6502, up 18.28% in 2018. Since then he has faced activist shareholders unhappy with the company’s governance. The outlook: Toshiba’s wide range of businesses, from nuclear plants to sewage facilities, electronics and batteries, makes it likely that the total takeover of the company by a foreign owner will be carefully evaluated by the Japanese government, which he would have to approve the deal. .
Critics of the company’s current management may argue that the discussed deal could help Kurumatani keep his job, though the activists’ funds would make a big profit from the purchase, even at the currently rumored price, which could be increased by a later stage. But Toshiba’s current valuation and the nature of its many businesses could also lead to the failure of the Japanese company, helping to extract value. Depending, of course, on whether the Japanese government agrees with such an outcome. More: Japan’s Toshiba Gives ‘Careful Consideration’ To Global Fund Takeover Offer