{"id":120075,"date":"2021-04-07T04:10:05","date_gmt":"2021-04-07T04:10:05","guid":{"rendered":"https:\/\/precoinnews.com\/?p=120075"},"modified":"2021-04-07T04:10:05","modified_gmt":"2021-04-07T04:10:05","slug":"japans-toshiba-to-get-proposal-to-go-private-from-cvc-capital-source","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/markets\/japans-toshiba-to-get-proposal-to-go-private-from-cvc-capital-source\/","title":{"rendered":"Japan's Toshiba to get proposal to go private from CVC Capital: source"},"content":{"rendered":"
(Reuters) – Private equity firm CVC Capital Partners will propose taking Toshiba Corp private in a deal worth more than 2 trillion yen ($18 billion), a person familiar with the matter said, as the Japanese firm is embroiled in a battle with activist shareholders.<\/p> If realized, the deal will save management of the scandal-hit conglomerate, particularly embattled Chief Executive Nobuaki Kurumatani, from scrutiny amid calls from large overseas shareholders for greater transparency and better governance.<\/p>\n \u201cWe\u2019ve received the proposal,\u201d Kurumatani told a group of reporters, according to the Nikkei newspaper. \u201cWe\u2019ll discuss it at a board meeting\u201d to be held on Wednesday, he added.<\/p>\n The Tokyo Stock Exchange suspended trading in Toshiba\u2019s shares after the Nikkei reported the proposal earlier.<\/p>\n Kurumatani, a former banker at main Toshiba lender Sumitomo Mitsui Financial Group, headed the Japanese arm of CVC before joining Toshiba. One of Toshiba\u2019s board members is senior adviser of CVC Japan.<\/p>\n U.S.-listed shares of Toshiba jumped 19.4% after the report.<\/p>\n CVC is considering a 30% premium over Toshiba\u2019s current share price in a tender offer, the Nikkei business daily reported. That would put the value of the deal at more than 2 trillion yen based on Tuesday\u2019s close.<\/p>\n CVC is looking to expand in Japan, taking advantage of large Japanese companies under pressure to sell non-core assets and improve returns to shareholders. It is buying Shiseido Co Ltd\u2019s lower-priced skincare and shampoo brands for $1.5 billion.<\/p>\n An acquisition of Toshiba, one of Japan\u2019s few manufacturers of nuclear power reactors, needs government approval.<\/p>\n Toshiba declined to comment on the news and CVC did not immediately respond to a Reuters request for comment.<\/p>\n The battle between activist investors and Toshiba management has played out in public view, and is seen as a test case for whether the established giants of corporate Japan can respond to calls for better governance.<\/p>\n The Japanese firm has been under pressure from activist funds since it sold 600 billion yen of stock to dozens of foreign hedge funds during a crisis stemming from the bankruptcy of its U.S. nuclear power unit in 2017.<\/p>\n ($1 = 109.7500 yen)<\/p>\n