Toshiba has received an offer that will be the biggest private equity offer in the Asia-Pacific region.
Toshiba Corp is considering an offer of $20 billion from a private equity CVC Capital Partners. The Private equity firm has offered a 30% premium over its current stock price i.e. 2.3 trillion yen ($21 billion). This is causing the shares price to soar by 18%.
The management is under pressure facing a regulatory review from the government
The companies management has been under immense pressure previously as they have been close to facing bankruptcy after selling 600 billion yen of stock and foreign hedge funds. Any approval will lead to regulatory review as they are one of the few companies to make sensitive products for the Japanese government and military.
If Japan’s Toshiba Corp accepts the deal then it will be considered the biggest private equity deal in the Asian-Pacific region after Blackstone ($6 billion).