Toshiba Corp. has been offered an acquisition proposal by CVC Capital Partners. The preliminary proposal by the private equity firm would take it private. The Japanese technology conglomerate is considering the offer. The offer is worth USD 18 billion or 2 trillion yen. The company said that it has asked for more details about the proposal. “We are giving it careful consideration. We would be making an announcement in due course,” the company said. CVC is headquartered in Luxembourg. It has declined to comment on the development. Experts believe that the offer is at very nascent stage and it will take time to have something concrete on tables.
Toshiba was considered to one of the most popular brands in Japan for a long time. The company developed the first radar and microwaves in Japan. Some other equipment that were developed by the company in the country are laptop computers and electric rice cookers. The company is also credited for developing flash memory. The omnipresent chips store and retain data of several gadgets. But the company is no longer in the business of making laptops. It has already sold its computer chips division. The proposal to make Toshiba a private company can help quiet dissenting voices from different shareholders.
Toshiba President Nobuaki Kurumatani reportedly said a board meeting would be held. Kurumatani earlier worked as head of CVC in Japan. He joined Toshiba in 2018. Toshiba has been mired in several scandals in recent years. The company has been also dogged by several ethical questions. Toshiba even acknowledged that its books were falsified since 2008. The company said it was done as several managers tried to meet targets. An outside investigation was held that revealed it inflated profits. The company had hidden some of its massive expenses. Toshiba has heavily invested in nuclear power. But the cost of the business has ballooned after March 2011 disaster. The company is now tasked with decommissioning of nuclear plants.