Toshiba – Talking Take-out or Fix-up?
Toshiba (6502.JP) has been around since 1875 and at one time was among the top TV and PC brands, but the company has gone through some hard times, with an accounting scandal in 2015 where the company was found to have inflated profits by $1.2b over a seven year period, and a 2017 debacle over $6.3b in losses at its wholly-owned Westinghouse nuclear plant construction business. The company still produces a number of CE products, medical products, and semiconductors, but has lost much of the cache it once had in the CE space.
The company did receive a $20b bid from Britain’s CVC Capital (pvt), but rejected the offer, with Toshiba’s president & CEO stepping down after accusations that the rejection was made to protect his position (he also previous held a position at CVC). But it seems that things are not quite back to normal at Toshiba, as sources in Japan say that the company is discussing options with a number of private equity firms on ‘suggestions’ about how the company might embark on a new strategy. It is doubtful that Toshiba is soliciting offers for the company or specific assets, but more some help in formulating a plan for its business lines, as a recent story that the company was secretly cooperating with the Japanese government to put pressure on foreign institutions concerning funding for would-be acquirers began a strategic review of the company after the recent management shakeup. The company expects to release its new business plan in October
The company did receive a $20b bid from Britain’s CVC Capital (pvt), but rejected the offer, with Toshiba’s president & CEO stepping down after accusations that the rejection was made to protect his position (he also previous held a position at CVC). But it seems that things are not quite back to normal at Toshiba, as sources in Japan say that the company is discussing options with a number of private equity firms on ‘suggestions’ about how the company might embark on a new strategy. It is doubtful that Toshiba is soliciting offers for the company or specific assets, but more some help in formulating a plan for its business lines, as a recent story that the company was secretly cooperating with the Japanese government to put pressure on foreign institutions concerning funding for would-be acquirers began a strategic review of the company after the recent management shakeup. The company expects to release its new business plan in October
RSS Feed