Japanese tech company Toshiba has received a purchase offer worth about $ 20 billion (£ 14.5 billion) from a major British private equity fund. Toshiba transactions at the Tokyo Stock Exchange were temporarily suspended following the UK-based CVC Capital Partners offer. CVC, which makes very serious purchases in the Asian market, is a company worth approximately 75 billion dollars.
The Japan-based holding has been at the center of a series of scandals in recent years, including fake accounts and massive losses linked to the US nuclear unit. In order to compensate for his huge losses, he had to withdraw from the chip industry, which was making serious profits, and sold his factories.
Toshiba, which has achieved many firsts in the laptop industry and is known along with the most powerful in the market, has also stopped producing laptops in recent years. With the CVC agreement, all these negativity is expected to be reversed.
It is clear that Japan has not been able to grow its big tech companies in recent times, but many of them face downsizing and closures. Toshiba’s CEO and president Nobuaki Kurumatani today confirmed the offer of his new employer, CVC Capital Partners, and said “we will discuss this at a board meeting.”
Toshiba is one of Japan’s oldest and largest companies, ranging from home electronics to nuclear power plants. But it has also been hit by serious scandals in recent years. One is the accounting scandal of 2015, when the company admitted to exaggerating profits for six years. With this confession, Japan’s corporate world was shocked and their confidence in Toshiba was shaken.
The company was on the verge of bankruptcy and had to sell various jewelry businesses to avoid being removed from the Tokyo Stock Exchange. Toshiba came under pressure from major overseas shareholders for greater transparency and better management, and as a result had to consider CVC Capital Partners’ offer.
CVC; He wants to grow in Japan, and if things go in the desired direction, it will allow Toshiba to focus on renewable energy, as well as other core businesses.
After joining CVC Capital Partners, toshiba’s business is foreseen to recover. Its shares, which are re-listed on the Asian stock exchange, are already up 1.4 percent.