Complexities Abound in CVC’s Toshiba Buyout Offer, Says Chairman

Toshiba’s board “will conduct careful review” of the buyout offer it received Tuesday from private equity firm CVC Capital Partners “when it is further clarified in the future,” commented Chairman Osamu Nagayama Friday. “This initial proposal by CVC was completely unsolicited and not initiated by Toshiba by all means,” he said. Complexities abound in the offer, including the need to get regulatory approvals in all “relevant jurisdictions,” he said. “The proposed transaction is not contemplated to be financed by CVC alone,” but through funding from “certain co-investors and financial institutions.” Such a financing process "would require a substantial amount of time and involve complexity for consideration,” said Nagayama. CVC didn’t comment.