JAPAN: Toshiba is reported to have formed a team to review last week’s buyout offer by British private equity firm CVC Capital Partners, which could be worth up to $20bn.
Confirming earlier press reports, Toshiba board chair Osamu Nagayama said that the company had received a preliminary and non-legally binding initial proposal from CVC. He maintained that the approach was “completely unsolicited”.
Estimated to be worth between $15bn to $20bn, the deal would be CVC’s biggest ever deal and the largest leveraged buyout in Japan’s history.
Although CVC has not commented on the offer, Toshiba said the initial proposal would be conditional on a number of issues including anti-trust clearance, negotiating the Foreign Exchange and Foreign Trade Act of Japan and necessary financing.
In addition, Toshiba said the proposed transaction was not expected to be financed by CVC alone. It said that CVC indicated that it would seek financing assistance from other co-investors and financial institutions.