CVC Effectively Withdraws Buyout Offer for Toshiba

Economy

Tokyo, April 20 (Jiji Press)--Toshiba Corp. <6502> said Tuesday that it has received a letter from British investment fund CVC Capital Partners stating the suspension of its acquisition offer for the Japanese electronics and machinery maker.

CVC effectively withdrew the acquisition offer as Nobuaki Kurumatani resigned as Toshiba president and CEO on Wednesday last week and the Toshiba management team strongly opposed the fund's proposal to take the firm private, informed sources said. In the buyout proposal, CVC assumed that Kurumatani would continue to be the leader of the company.

The latest move by CVC is likely to affect the strategies of other investment funds that aim to acquire Toshiba, the sources said.

Toshiba received the letter on Monday. CVC said in a document, a copy of which was obtained by Jiji Press, that it has no intention to launch a tender offer for Toshiba without obtaining consent from the board of the company, suggesting that it is not considering a hostile bid.

CVC said in the letter that it would "step aside" to await Toshiba's guidance as to whether its privatization will suit the "strategic objectives" of its management and board of directors.

[Copyright The Jiji Press, Ltd.]

Jiji Press