The Toshiba Corporation logo is seen at the company building in Kawasaki, Japan, on April 5, 2023. Portal/Androniki Christodoulou/File Photo Acquire License Rights
TOKYO, Sept 21 (Portal) – Toshiba (6502.T) said on Thursday it had successfully completed a $14 billion takeover bid from private equity firm Japan Industrial Partners (JIP), a deal that which paves the way for the embattled industrial group to go private.
The JIP-led consortium was tendered 78.65% of Toshiba shares, giving the group a majority of more than two-thirds, enough to oust the remaining shareholders.
The deal puts the electronics power station maker in domestic hands after years of battles with activist shareholders abroad.
Toshiba accepted the takeover offer in March, valuing the industrial group at 2 trillion yen ($13.5 billion). Although some shareholders were unhappy with the price offered, Toshiba argued that there was no prospect of a higher offer or a competing offer.
“We are deeply grateful to many of our shareholders for understanding the company’s position,” Toshiba Chief Executive Taro Shimada said in a statement on Thursday. Toshiba “will now take a big step into a new future with a new shareholder,” he added.
Toshiba has stated that its complex relationships with various stakeholders, including shareholders with differing opinions, have hampered its business operations and that a stable shareholder base would help the company pursue its long-term strategy.
Although JIP is not well known abroad, it has been involved in corporate spinoffs and spinoffs of Japanese corporations, including Olympus’ camera business (7733.T) and Sony Group’s laptop computer business (6758.T).
JIP plans to retain CEO Shimada and his management team.
Since 2015, Toshiba has been hit by accounting scandals, suffered heavy losses and was also on the verge of delisting. Additionally, the company has been involved in a number of corporate governance scandals.
The JIP consortium includes 20 Japanese companies, led by chip maker Rohm (6963.T), financial services company Orix (8591.T) and Chubu Electric Power (9502.T).
($1 = 148.3000 yen)
Reporting by Makiko Yamazaki; Edited by Christopher Cushing and Edwina Gibbs
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