U.K. Fund CVC Capital Offers to Buy Toshiba


Tokyo, April 7 (Jiji Press)--Entities including British investment fund CVC Capital Partners have offered to acquire major Japanese electronics and machinery maker Toshiba Corp. <6502>, it was learned Wednesday.

They aim to take Toshiba private to thoroughly revamp the firm's governance system and help speed up its decision-making by fending off pressure from activist shareholders, informed sources said. The costs of acquisition may top 2 trillion yen, according to the sources.

"We have received (an acquisition offer)," Toshiba President Nobuaki Kurumatani told reporters Wednesday. The firm discussed its response to the proposal at a board meeting Wednesday morning. Kurumatani previously served as chairman of CVC Capital's Japanese unit.

Toshiba said in a statement the same day that it received an "initial proposal" on Tuesday, adding that it will ask for "further clarification" and give "careful consideration" to the buyout proposal.

After working out specifics, CVC Capital plans to make a detailed proposal to acquire Toshiba and launch a tender offer for the company, the sources said. CVC Capital is also considering calling on other investment funds to join the buyout scheme.

[Copyright The Jiji Press, Ltd.]

Jiji Press