CVC delays Toshiba buyout offer after CEO change
Private equity firm CVC Capital Partners will delay submitting a formal proposal to buy Toshiba Corp (6502.T), following the appointment of a new chief executive officer by the Japanese industrial group, the Nikkei reported on Friday.
CVC believes Toshiba’s new leadership will need time to settle in before it can make any decisions on a potential buyout, the report said.
Toshiba and CVC did not immediately respond to requests for comment.
Earlier this week, Toshiba CEO Nobuaki Kurumatani resigned amid controversy over the $20 billion buyout bid from CVC Capital Partners.
Satoshi Tsunakawa, who led the company before Kurumatani and until Wednesday was chairman, will once again assume the helm.
Kurumatani, CEO for three years, had been under fire over the bid from CVC, his former employer. He was also facing allegations that investors were pressured before a shareholder meeting to support desired board nominations.
U.S-listed shares of Toshiba fell 6% following the report.