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
