On Friday, the chairman of Toshiba Corp issued a statement stating CVC Capital Partners’ recent offer to take the company private, was unsolicited and would require various antitrust approvals and financing.
“This initial proposal by CVC was completely unsolicited and not initiated by Toshiba,” said board chairman Osamu Nagayama.
A deal would help shield Toshiba and Chief Executive Nobuaki Kurumatani, who joined the company from CVC, amid increasing pressure from activist shareholders.
Toshiba is considering a $20 billion offer from the private equity firm.
Analysts have also warned of tough regulatory reviews given that Toshiba’s business includes building nuclear reactors and lithium-ion batteries used in military submarines.
CVC’s proposal was contingent on financing assistance from co-investors and financial institutions, said Nagayama.
“We expect that such financing process would require a substantial amount of time and involve complexity for consideration,” said Nagayama while adding that the board would carefully review the proposal.