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

Accelerating AI modernisation with data infrastructure

Generate business value from your AI initiatives

Free Download

Recommendations for managing AI risks

Integrate your external AI tool findings into your broader security programs

Free Download

Modernise your legacy databases in the cloud

An introduction to cloud databases

Free Download

Powering through to innovation

IT agility drive digital transformation

Free Download

Recommended

Skills shortages expected to hit over 90% of Australian and New Zealand businesses
Careers & training

Skills shortages expected to hit over 90% of Australian and New Zealand businesses

28 Jun 2022
Why India wants to become a chipmaking powerhouse
components

Why India wants to become a chipmaking powerhouse

28 Jun 2022
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

Most Popular

Actively exploited server backdoor remains undetected in most organisations' networks
cyber attacks

Actively exploited server backdoor remains undetected in most organisations' networks

1 Jul 2022
Macmillan Publishers hit by apparent cyber attack as systems are forced offline
Security

Macmillan Publishers hit by apparent cyber attack as systems are forced offline

30 Jun 2022
Former Uber security chief to face fraud charges over hack coverup
data breaches

Former Uber security chief to face fraud charges over hack coverup

29 Jun 2022