Toshiba has bid adieu to the Tokyo exchange after 74 years marking the end of an era marred by a decade of turmoil and scandal that brought down one of Japan's biggest brands. A group of investors, including private equity firm Japan Industrial Partners (JIP), financial services firm Orix, utility Chubu Electric Power, and chipmaker Rohm, will lead a $14 billion takeover to transition the conglomerate into private ownership.
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Photo: Japan Times
Toshiba's $14 billion acquisition will result in the company being owned by domestic investors, following prolonged conflicts with foreign activist investors that had severely impacted the company's operations in the battery, chip, nuclear, and defence equipment sectors. Toshiba "will now take a major step toward a new future with a new shareholder," the company said in a statement. The company also conveyed its gratitude for the ongoing understanding and support from its stakeholders.
Toshiba's future shape remains uncertain under its new owners, but Chief Executive Taro Shimada, who will continue in his role after the buyout, is anticipated to prioritize high-profit digital services.
As quoted in a report by Reuters, "Toshiba's difficulties ultimately were caused by a combination of bad strategic decisions and bad luck," said Damian Thong, head of Japan research at Macquarie Capital Securities. "I hope that through divestitures, Toshiba's assets and human talent can find new homes where their full potential can be unleashed."
Japan's government will closely monitor the situation as the company employs approximately 106,000 individuals, and certain aspects of its operations are deemed crucial for national security.
(With inputs from Reuters)
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