Toshiba gets buyout offer from equity group CVC

Japanese industrial conglomerate Toshiba has received a buyout proposal from an international private equity firm, CVC Capital Partners. The value of the offer has not been disclosed.

Toshiba officials say they will carefully consider the proposal while seeking more information. President and CEO Kurumatani Nobuaki told reporters on Wednesday that they will discuss the proposal at a meeting of the board of directors.

Toshiba's market capitalization is over 1.7 trillion yen or about 15.8 billion dollars.

Sources say CVC has suggested taking Toshiba private.

The proposed deal comes as Toshiba is locked in a dispute with another investment fund, Effissimo Capital Management, a major shareholder. That is over Toshiba's handling of its stockholders meeting last July.

CVC may be aiming to win over Toshiba's board by suggesting that going private would protect the company from the influence of activist shareholders.

Toshiba is engaged in the nuclear business.
That means the deal must be notified to the Japanese government before it can be completed.
Japanese law requires stronger regulation of foreign investment in firms that are key to national security.