CVC and KKR mull bids for Toshiba as bosses explore sale
Buyout giants CVC and KKR are mulling bids for Japanese conglomerate Toshiba as bosses explore a sale following a protracted battle with shareholders over the future of the group.
Potential suitors have been in talks with Toshiba bosses and advisers in recent weeks, with Bain Capital also reportedly exploring a potential move for the firm, Bloomberg first reported.
A buyout of Toshiba, which has a market cap of $18bn, could be the biggest ever deal in Japan.
Bosses have so far struggled to secure backing from shareholders over a route forward for the firm, after initially opposing a sale and favouring splitting the conglomerate in two earlier this year.
But plans to break up the business were voted down by shareholders last month, prompting the firm to announce on April 21 it had begun soliciting proposals from potential suitors to take the firm private, alongside other strategic alternatives, Bloomberg reported.
Toshiba has hired Nomura Securities as a financial adviser.
British buyout giant CVC launched a bid last year but backed out of the deal after investors raised concerns over a conflict of interest for Toshiba’s boss, who previously worked at CVC. Nobuaki Kurumatani then stepped down as Toshiba’s president and CEO after losing support from activist funds.
Toshiba’s share price jumped over five per cent after bosses said they had begun exploring a buyout of the group.