TOKYO – Toshiba stock trading was halted on Wednesday after the Tokyo-based tech conglomerate confirmed that it had received a preliminary buyout proposal.
said Tuesday they have asked for more details on the proposal, are “carefully reviewing it” and will issue an announcement “within the appropriate time frame.”
The major Japanese newspaper Nikkei reported that CVC Capital Partners is considering buying the company for 2 trillion yen ($ 18 billion).
CVC is an international private equity and credit company, has pledged to invest nearly $ 162 billion, and manages more than 300 investors. It declined to comment.
Toshiba, founded in 1875, long revered as one of Japan’s most pristine brands, developed the nation’s first radars and microwaves, rice cookers and laptops. . It also invented flash memory, a popular computer chip for storing and storing data for digital cameras, cell phones and other devices. Toshiba no longer makes laptops and has sold parts of its computer chips.
In recent years, the company has been caught up in ethical questions and bogged down in scandals. In 2015, Toshiba admitted that it systematically falsified its books since 2008, when managers tried to achieve overly ambitious goals. An outside investigation found that the profits were inflated and the large expenses were hidden.
It has invested heavily in nuclear energy. But after the March 2011 nuclear disaster in Fukushima, business costs soared due to growing safety concerns and declining sentiments for nuclear power in countries like Germany.
After Toshiba acquired Westinghouse in 2006 with much fanfare, the US nuclear unit filed for bankruptcy protection in 2017.
Toshiba is currently tasked with shutting down nuclear plants in Japan, including the one in Fukushima, where there was severe damage caused by the tsunami due to a reactor failure.