$14 billion takeover bid by JIP a success: Toshiba

Robert Besser
24 Sep 2023, 19:55 GMT+10

This week, Toshiba revealed that a tender offer worth US$14 billion from Japan Industrial Partners (JIP) was a success
The deal with the private equity firm will pave the way for the embattled industrial conglomerate to go private
After it tendered 78.65 percent of shares in the 148-year-old electronics-to-power stations maker, the JIP-led consortium now has a majority of more than two-thirds

TOKYO, Japan: This week, Toshiba revealed that a tender offer worth US$14 billion from Japan Industrial Partners (JIP) was a success.

The deal with the private equity firm will pave the way for the embattled industrial conglomerate to go private.

After it tendered 78.65 percent of shares in the 148-year-old electronics-to-power stations maker, the JIP-led consortium now has a majority of more than two-thirds, which would enable it to buy out other shareholders.

After the deal, Toshiba is back in domestic hands after years of battles with overseas activist investors and could be delisted as early as December.

Analyst Travis Lundy of Quiddity Advisors, who publishes on Smartkarma, said, "Activist shareholders and Toshiba were stuck with each other for years. This takeover allows both sides to escape their mutual bearhug."

"I expect the prospect of management and new ownership alignment will improve morale. However, to succeed, management needs to be able to tell a better story to investors coming out of this," Lundy added.

Its complex relationships with various stakeholders, including shareholders with different opinions, have negatively affected its business operations, and a stable shareholder base would help it pursue its long-term strategy centered on high-margin digital services, Toshiba said.

Since 2015, Toshiba has been hit by accounting and corporate governance scandals, suffered heavy losses, and came close to delisting.

JIP's consortium includes 20 Japanese companies, led by chipmaker Rohm, financial services firm Orix, and Chubu Electric Power.

Watch latest videos

News RELEASES

Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to South America Times.

More Information

18 ℃

Fair in Buenos Aires/Aeroparque

International

Section

Michigan man sentenced to prison term for keeping dead wife in freezer

MOUNT PLEASANT, Michigan: This week, a judge sentenced a Michigan man who kept his dead wife's body in a freezer ...

US CDC says life expectancy for newborns in 2022 gained a year

ATLANTA, Georgia: After two consecutive years of declines mainly caused by the COVID-19 pandemic, babies born in the U.S. in ...

Three more Israeli troops die in Gaza conflict, death toll hits 400

The number of soldiers in the Israeli army killed in the current Israel-Hamas war has topped 400. Three hundred and ...

Detention extended by Russian court of WSJ's US reporter

MOSCOW, Russia: A Russian court has extended the detention of Evan Gershkovich, a U.S. reporter for the Wall Street Journal, ...

Casualties mount again in Gaza as bombardments gather pace

Israel intensified its deadly bombardment of the Gaza Strip Saturday as renewed fighting with Hamas entered a second day following ...

Nikki Haley's 2024 Republican presidential bid endorsed by Koch Group

ARLINGTON, Virginia: This week, the conservative U.S. political network Americans for Prosperity Action (AFP Action), led by billionaire Charles Koch, ...