Japan’s Toshiba Corp. is exploring a $20 billion offer from private equity firm CVC Capital Partners to take it private, according to Reuters. CVC targets a 30% premium over Toshiba’s current share price in a tender offer.
The offer comes, three weeks after Toshiba shareholders approved an independent probe into the scandal-hit company.
Toshiba faces pressure from activist shareholders to improve governance and the offer could invite regulatory review given the company’s government work.
The proposed offer represents a chance for CVC to expand in Japan where large companies are under pressure to sell non-core assets and improve return to shareholders.
LightStream Research analyst Mio Kato, who publishes on investment research platform Smartkarma, described the offer price as too low.
The offer would be the biggest private equity-led deal in Asia Pacific this year
Toshiba stock is currently gaining. 6502: TYO is up 18.28%