TOKYO (AP) – Trading on the Toshiba Stock Exchange was suspended on Wednesday after the Tokyo-based technology conglomerate confirmed that it had received a preliminary offer.
Toshiba Corp. said on Tuesday it had asked for more details on the offer, was “thoroughly studying” and would make a “timely” announcement.
The Japanese-based major Nikkei newspaper reports that CVC Capital Partners intended to acquire the company for 2 trillion yen ($ 18 billion).
CVC is an international private equity lending company committed to raising nearly $ 162 billion, managing more than 300 investors. It declined to comment.
Founded in 1875, Toshiba has long been regarded as one of Japan’s most iconic brands, developing the country’s first radar microwave ovens, electric rice cookers and laptops. It invented flash memory, ubiquitous computer chips that store data from digital cameras, cell phones, and other devices. Toshiba no longer works with laptops և has sold its share of computer chips.
In recent years, it has pursued ethical issues, stuck in scandals. In 2015, Toshiba admitted that it had been systematically falsifying its books since 2008 as executives tried to achieve extremely ambitious goals. An external investigation revealed that the profits were inflated and the mass expenditures were hidden.
It has invested heavily in nuclear energy. But after the Fukushima nuclear disaster in March 2011, business spending rose amid growing security concerns and growing energy sentiment in countries like Germany.
After Toshiba acquired Westinghouse with great pomp in 2006, in 2017 the US nuclear unit filed for bankruptcy.
Toshiba is now tasked with decommissioning nuclear power plants in Japan Aponia, including Fukushima, where severe tsunami damage caused the reactor to melt.
Yuri Kageyama is on Twitter: https://twitter.com/yurikageyama