Luxembourg private equity CVC to take Toshiba private at $20 billion takeover deal

Luxembourg-based private equity firm CVC Capital has been mulling a potential $20 billion deal to take Japanese industrial conglomerate Toshiba Corp. private

by Sourav D
Luxembourg private equity CVC to take Toshiba private at $20 billion takeover deal

Luxembourg-based global private equity firm CVC Capital having had an approximated $111 billion worth of assets under management, has been mulling a $20 billion deal to privatize Japan’s Toshiba through a tender offer and a formal proposal is expected as early as by Wednesday, a Nikkei Asia newspaper report published earlier in the day had unveiled citing unnamed sources familiar with the transaction.

Apart from that, the Nikkei Asia report quoted one of the sources as saying that the CVC Capital had been contemplating a 30 per cent premium on the Japanese Industrial Conglomerate’s Tuesday’s closing price, valuing the deal at a roughly $20.8 billion or 2.3 trillion Japanese Yen, while the global equity firm was planning to recruit other investors, too, on its acquisition bid for Toshiba, said the sources.

On top of that, followed by the reveal of media headline that CVC Capital was plotting a plausible takeover of Japanese industrial conglomerate Toshiba at a $20 billion deal, shares’ prices of Tokyo-based multinational industrial giant, Toshiba Corp., surged more than 20 per cent to $21.50 in late-afternoon US trading hours.

Nonetheless, Tokyo-listed shares’ prices of Toshiba Corp. wrapped up Tuesday’s market 3.04 per cent lower to 3,830 Japanese Yen a share.

CVC Capital seeks $20 billion deal to take Toshiba private

In factuality, latest CVC Capital move to take Toshiba private comes over the heels of a series of hefty losses in Toshiba Corp.’s annual turnovers in recent years, while the Japanese industrial conglomerate’s previous attempts to vent out a way around activist investors following a swathe of scandals and losses over recent years as beforemtioned, remained unsuccessful.

Nonetheless, should CVC Capital be able to take Toshiba private at a $20 billion deal, it would represent a rare event when one of the Japan’s leading industrial behemoths would have to retreat public markets to avert stakeholders’ scrutiny, branding a dramatic downfall of an ex-tycoon of corporate Japan.