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Tech Giant Toshiba Offered $20Bn Takeover Bid From CVC

Tech Giant Toshiba Offered $20Bn Takeover Bid From CVC

The Japanese conglomerate Toshiba has received a buyout offer from a private British equity fund in a deal worth $20bn. When the scandal-hit firm revealed the bid by CVC Capital Partners, its shares were temporarily halted on Tokyo’s stock exchange. In the United States, however, Toshiba’s listed shares skyrocketed almost by 20% after they revealed the bid.

Toshiba will now focus only on renewable energy and other core businesses if this move by CVC is successful.

In recent years, the conglomerate has been at the centre of a number of scandals including false accounting. They also faced huge losses linked to its US nuclear unit. This forced the firm to sell its profit-making chip sector to make up for the huge losses.

Toshiba’s chief executive and president, Nobuaki Kurumatani, confirmed the offer from CVC Capital Partners on Wednesday. He also added that they will discuss the offer in a board meeting.

Once synonymous with the global ascent of corporate Japan, Toshiba has since been forced to diversify into other areas.

In 2020, the electronics giant sold its final stake in the personal computer maker Dynabook. This move marked the end of Toshiba’s making of PCs or laptops. It has also been under pressure from large overseas shareholders demanding transparency and better governance.

As for CVC, it looks to expand in Japan and has bought a low-cost skincare brand Shiseido at $1.5bn. It is also making big investments in rugby, paying £365m for a 14.3% stake in the Six Nations annual men’s rugby tournament.

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