IT Pro is supported by its audience. When you purchase through links on our site, we may earn an affiliate commission. Learn more

Toshiba receives £14.5 billion takeover bid

The offer comes from CVC Capital Partners, which has an office in London and its official headquarters in Luxembourg

Toshiba has confirmed that it has received a proposal to be acquired by CVC Capital Partners, a Luxembourg-based private equity firm.

In a note published on its website, the company said: “Toshiba received an initial proposal yesterday, and will ask for further clarification and give it careful consideration. The company will make a further announcement in due course.”

The offer, which is for a reported $20 billion (£14.5 billion), came from private equity firm CVC Capital Partners, which has an office in London and its official headquarters in Luxembourg.

Toshiba has had a rocky few years which saw it hit by scandals and forced to sell parts of its business. Over a period of seven years, the Japanese tech giant claimed its profits were $1.3bn higher than they really were, which became known as the Toshiba accounting scandal in 2015. Japan’s Securities and Exchange Surveillance Commission recommended a $60 million penalty to the firm following the accounting fraud.

Toshiba’s president and vice-president left the company as an independent panel found it had overstated its profits.

Related Resource

IT Pro 20/20: Meet the companies leaving the office for good

The 15th issue of IT Pro 20/20 looks at the nature of operating a business in 2021

IT Pro 20/20: Leaving the office for goodDOWNLOAD NOW

In 2017, the company was facing up to $5 billion in losses and attempted to sell its memory chip business in an attempt to raise money. It experienced difficulty as its joint-venture partner, Western Digital, was concerned the sale might violate the companies’ contract. The two companies fell out, particularly as one of Western Digital’s rivals tried to participate in a bidding consortium for the business. Ultimately, Toshiba sold its flash memory unit for $18 billion to a group led by Bain capital.

Furthermore, the company was looking to offload its memory chip unit in 2020 by selling a 40.2% stake in flash memory chip manufacturer Kioxia Holdings. It reportedly wanted to escape the volatility of the semiconductor market.

A few months later, Toshiba officially exited the laptop business after a 35-year run. It sold its remaining 19.9% stake in the Dynabook laptop brand to Sharp. The sale came two years after Sharp bought an 80.1% stake of Toshiba’s PC business for $36 million (£27 million).

Featured Resources

Meeting the future of education with confidence

How the switch to digital learning has created an opportunity to meet the needs of every student, always

Free Download

The Total Economic Impact™ of IBM Cloud Pak® for Watson AIOps with Instana

Cost savings and business benefits

Free Download

The business value of the transformative mainframe

Modernising on the mainframe

Free Download

Technology reimagined

Why PCaaS is perfect for modern schools

Free Download

Recommended

Samsung fined $14 million over misleading water resistance claims across its Galaxy smartphones
Mobile Phones

Samsung fined $14 million over misleading water resistance claims across its Galaxy smartphones

23 Jun 2022
Toshiba eyes $22bn buyout offer in bid to go private
Business strategy

Toshiba eyes $22bn buyout offer in bid to go private

23 Jun 2022
Tencent to open third data centre in Japan
data centres

Tencent to open third data centre in Japan

22 Jun 2022
Can the four-day week take off in Japan?
flexible working

Can the four-day week take off in Japan?

16 Jun 2022

Most Popular

How to boot Windows 11 in Safe Mode
Microsoft Windows

How to boot Windows 11 in Safe Mode

7 Jun 2022
Delivery firm Yodel disrupted by cyber attack
cyber attacks

Delivery firm Yodel disrupted by cyber attack

21 Jun 2022
Salaries for the least popular programming languages surge as much as 44%
Development

Salaries for the least popular programming languages surge as much as 44%

23 Jun 2022