Toshiba, currently courted by numerous PE groups, confirmed it ‘received an initial proposal’ from CVC this week and will ‘ask for further clarification and give it careful consideration’, in what looks like a process which could become Japan’s largest ever buyout deal. 

CVC’s interest in the company sent the Tokyo-based Japanese multinational conglomerate’s shares surging on the back of the news, and trading of Toshiba shares was stopped on Tokyo’s stock exchange when it opened after the company confirmed the offer. 

Toshiba issued a statement today saying that the initial proposal is conditional on clearance of anti-trust regulation, as well as the Foreign Exchange and Foreign Trade Act of Japan, and on CVC being able to secure the necessary funding of the deal. 

The Japanese corporation also said that the proposal involved seeking finance assistance from co-investors and financial institutions in pursuing the proposed transaction. “We expect that such a financing process would require a substantial amount of time and involve complexity for consideration,” Toshiba concluded. PEWire will be sure to keep a close eye on developments. 

In this week’s Tuesday podcast, Private Equity Wire sat down with Hugh Elwes, managing director of Stephens Europe, to talk about financial services M&A and why the sector is so busy at the moment, seeing the financial services sector having experienced a lot of consolidation recently. 

Amid other factors, asset managers have commented that their businesses have evolved more in six weeks during the pandemic than they did in the prior ten years, while tech giants like Twitter have said their staff can continue working remotely from now on. 

In this conversation Elwes gives his views on what the shifts during the past 12 months have meant for asset managers, and whether full time remote working might become the norm for the investment industry post-pandemic as well. 

Also this week, DEG invested in the Vinci Impact and Return Fund IV, contributing up to USD11.8 million to the impact fund, which targets crisis-hit Brazilian companies and has a USD150 million target.

“With our commitment we are supporting Brazilian SMEs, which are particularly important during the coronavirus pandemic. As the anchor investor in VIR IV, DEG strengthens the fund’s capital base, thereby mobilising other investors,” says Gunnar Stork, head of DEG’s Corporates/Project Finance/Funds Africa/Latin America division. 

Karin Wasteson
Editor, Private Equity Wire


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