Global private equity firm CVC Capital Partners is proposing a deal to privatize Toshiba through a tender offer that is expected to be worth more than $20 billion, Nikkei learned Tuesday.
A formal proposal is expected as early as Wednesday.
CVC is considering a 30% premium over the Japanese industrial group’s current share price, which would put the value of the deal at nearly 2.3 trillion yen ($20.8 billion) based on Tuesday’s close. The equity firm will consider recruiting other investors to participate in the acquisition.
Toshiba’s share price leapt in the U.S. on the news of the possible deal, with the price of its ADR rising almost 20% to $21.50 just before 2:00 p.m. EDT.
Source: Nikkei Asia
Can't stop reading? This and all news articles are property of their creators, many are not owned or provided by Private Equity Insider. As an event organizer and community platform, we curate content from reliable sources for your suggested reading, and advise you to read the full articles from the referenced authors and sources.