Tokyo based diversified products company Toshiba Corp. (TYO: 6502) is considering a $20 billion private takeover deal from private equity firm CVC Capital Partners. This was disclosed by an insider source who sought anonymity.
The source claims the company has been facing immense pressure from activist shareholders to pull up its socks on managerial issues.
In an event that Toshiba accepts this takeover deal, then the company will shift to a private owned company.
“Toshiba received an initial proposal yesterday, and will ask for further clarification and give it careful consideration,” said Toshiba without divulging into the details of the deal.
This announcement comes a few weeks after a recently held shareholder’s meeting recommended an independent investigation into the company. In a possible event that the private takeover deal sails through, then it will exclude the company’s chief executive officer Nobuaki Kurumatani from the probe.
Nonetheless, the deal will attract a government investigation into the company so as for the deal to be approved.
