BusinessJapanâs Toshiba considers $20 bln take-private deal - source
ReutersMakiko Yamazaki
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A reporter raises his hand for a question during a Toshiba news conference at the company headquarters in Tokyo, Japan June 23, 2017. REUTERS/Issei Kato
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Toshiba Corp (6502.T) is considering a $20 billion offer from private equity firm CVC Capital Partners to take it private, a person familiar with the matter said, as the Japanese industrial conglomerate faces pressure from activist shareholders to improve governance.
The proposed deal, which comes three weeks after shareholders approved an independent probe into the scandal-hit company, could shield management, particularly Chief Executive Nobuaki Kurumatani, from that scrutiny. It would, however, invite regulatory review given its government work.
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TOKYO (Reuters) - Shares in Japan’s Toshiba Corp surged on Wednesday, propelled higher by reports of more plans of bids for the conglomerate and expectations that its embattled chief executive would soon resign.
FILE PHOTO: Toshiba Corp CEO Nobuaki Kurumatani attends a news conference at the company s headquarters in Tokyo, Japan May 15, 2018. REUTERS/Issei Kato/File Photo
CEO Nobuaki Kurumatani is planning to resign amid controversy over a $20 billion buyout bid from his former employer, CVC Capital Partners, a source with knowledge of his decision told Reuters on Tuesday.
Toshiba said its board is meeting on Wednesday to discuss management issues but that reports about Kurumatani resigning were not based on company announcements.
Toshiba to discuss exec appointments as CEO seen stepping down
04/14/2021 0:19
TOKYO (Reuters) -Japanese conglomerate Toshiba Corp said its board would meet on Wednesday to discuss key executive appointments after widespread media reports that Chief Executive Nobuaki Kurumatani will step down.
Kurumatani is planning to resign as he faces controversy over a $20 billion buyout bid from his former employer, CVC Capital Partners, a source with knowledge of his decision told Reuters on Tuesday.
Kurumatani s departure could upend CVC s offer last week to take the Japanese company private. The takeover was seen as a means to shield him and other managers from pressure from activist shareholders seeking an investigation into whether management pushed investors to support their decisions.
Asian Shares Rise After US Inflation Data
CANBERA (dpa-AFX) - Asian stocks rose broadly on Wednesday after the International Monetary Fund offered a more upbeat view on Asia s economic outlook than six months ago and data showed a tamer-than-expected increase in U.S. underlying inflation.
Investors awaited cues from the U.S. earnings season, with JPMorgan Chase & Co. and Goldman Sachs Group Inc among the companies reporting their results later in the day.
Chinese shares advanced as strong exports data added to signs of a solidifying recovery in the world s second-largest economy. The benchmark Shanghai Composite index ended up 20.25 points, or 0.60 percent, at 3,416.72, while Hong Kong s Hang Seng index rallied 403.58 points, or 1.42 percent, to 28,900.83.
Asian Markets Mostly Higher
CANBERA (dpa-AFX) - Asian stock markets are broadly higher on Wednesday, following largely positive cues overnight from Wall Street and the International Monetary Fund s rosy view on Asia s economic outlook. Markets in the region remain cautious amid the surge in coronavirus cases in the region and the possible restrictions on economic activity in several markets. Asian markets closed higher on Tuesday.
The IMF said Tuesday that the Asian economy is expected to expand 7.6 percent in 2021, up from its previous outlook in October last year for an expansion of 6.9 percent. IMF expects Asia s economy to grow 5.4 percent in 2022.