Toshiba prices rose by 8% in the stock market after the bid reports

Toshiba prices rose by 8% in the stock market after the bid reports
A picture of the Toshiba company logo in Tokyo (Japan). EFE / Kimimasa Mayama / Archive

TOKYO, April 7 (EFE) – Shares of technology company Toshiba today rose 8% at the start of the Tokyo Stock Exchange session, after its chairman confirmed it had received an offer to buy the CVC Capital Partners investment fund.
Shortly before the end of the first hour of negotiation, the TSE operator suspended the company’s listing due to increased operations after information.
Toshiba President and CEO Nobuaki Kurumatani confirmed, on Wednesday, the information related to the offer, provided by the Nikkei economic daily, about which the company’s board of directors will discuss it at its board meeting in the coming hours.
According to Nikkei, CVC will consider offering a 30% premium to the current price of the Japanese group’s shares, which will raise the value of the operation to nearly 2.3 trillion yen (approximately 17.7 billion euros or 20.9 billion dollars).)
The investment fund is also considering attracting other investors to participate in the acquisition.
The proposal aims to speed up the decision-making process in a conglomerate that has faced frequent complaints from its activist investors as it tries to recover from a series of scandals and heavy losses in recent years.
Among the most recent episodes, Toshiba shareholders voted in March in favor of a proposal by Singaporean fund Evissimo Capital, its largest shareholder, to open an independent investigation into the legitimacy of the company’s top leadership after it was found guilty of irregularities in the vote for re-election. To Corumatane.
The offer would limit this type of conflict, by leaving the company in the hands of one shareholder.
Kurumatani, the first non-group president appointed in 53 years, was vice president of Sumitomo Mitsui Financial Group before becoming president of CVC’s Japanese subsidiary.
For the process to continue, it is necessary first to obtain permission from the Japanese regulator. The Finance Ministry will have to review the offer in advance, under the regulations in place in 2020 that require more scrutiny of foreign investment in companies with business in certain regions.
Toshiba has starred in a series of accounting scandals in recent years that have earned it a rebuke from Japanese regulators, and its financial woes have led it to strip itself of its nuclear branch in the United States and its semiconductor branch, the most profitable in the world. . Once upon a time the Japanese tech giant.

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