Toshiba’s second-largest shareholder calls for strategic evaluation and publicly looking for buyers

British private equity firm CVC Capital Partners (hereinafter referred to as CVC) proposed to privatize semiconductor manufacturer Toshiba with a $21 billion acquisition offer.

On April 15 this year, people familiar with the matter revealed that Toshiba is considering rejecting CVC’s takeover offer and seeking to maintain its listing status.

A few days later, on April 20 this year, Toshiba rejected CVC’s $20 billion acquisition offer for lack of details. The company stated that the letter it received from CVC on the potential acquisition on April 19 did not contain any specific and detailed information that could be evaluated in detail.

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Toshiba also stated that the letter did not provide necessary details such as CVC’s capital structure or post-acquisition management policies, nor did it provide assurances that CVC would comply with local and foreign laws and regulations.

On Monday, foreign media reported that 3D Investment Partners, Toshiba’s second-largest shareholder (holding a 7.2% stake in Toshiba), called on Toshiba to conduct a strategic evaluation and clearly solicit bidders.

The company stated that, in order to conduct fair and proper procedures, Toshiba should make it clear that it is open to other ownership structures and correct media speculation that Toshiba’s management team and board of directors are strongly inclined to maintain the status of a listed company.

Toshiba was founded in July 1875. It is Japan’s largest semiconductor manufacturer and the second-largest integrated electric machine manufacturer. It belongs to the Mitsui Group. Its business includes digital products, electronic components, social infrastructure equipment, home appliances, etc.

It is reported that in addition to CVC, US private equity firms Bain Capital, KKR & Co, Brookfield, Japan Investment Corp (JIC), and Norinchukin Bank are also considering bidding for Toshiba.

On April 14 this year, it was also reported that CVC plans to join hands with Bain Capital to purchase Toshiba. On April 21, two people familiar with the matter revealed that Bain Capital is considering formulating a bidding plan for the acquisition of Toshiba. At present, it is not clear whether Bain Capital will cooperate with other investors, but the source did not rule out this possibility.

(Via)