Toshiba says $14 billion takeover bid by JIP successful

The logo of Toshiba Corporation is displayed on the company building in Kawasaki

The logo of Toshiba Corporation is displayed on the company building in Kawasaki, Japan on April 5, 2023. Reuters/Androniki Christodoulou/File Photo Get licensing rights

TOKYO, Sept 21 (Reuters) – Toshiba (6502.T) said on Thursday a $14 billion tender offer from private equity firm Japan Industrial Partners (JIP) has ended in success – a deal that could be a major boost for the embattled industrial group. Paves the way. Get personal.

The JIP-led consortium saw 78.65% of Toshiba’s shares tendered, giving the group a majority of more than two-thirds which would be enough to squeeze out the remaining shareholders.

The deal hands the electronics-to-power station maker into domestic hands after years of fighting with foreign activist shareholders.

Toshiba accepted the industrial group’s buyout offer worth 2 trillion yen ($13.5 billion) in March. Although some shareholders were unhappy with the proposed price, Toshiba argued that there was no possibility of a higher offer or competitive bidding.

“We are very grateful to our many shareholders for their understanding of the company’s situation,” Toshiba Chief Executive Taro Shimada said in a statement Thursday. “Toshiba will now take a big step toward a new future with a new shareholder,” he said.

Toshiba has said that its complex relationships with various stakeholders, including shareholders with differing opinions, have hindered business operations and that a stable shareholder base will help the company pursue its long-term strategy.

Although not well known overseas, JIP has been involved in corporate carve-outs and spin-offs from Japanese groups, including Olympus’s (7733.T) camera business and Sony Group’s (6758.T) laptop computer business.

JIP plans to retain CEO Shimada and his management team.

Since 2015, Toshiba has been plagued by accounting scandals, suffered huge losses and even came close to delisting. It has also been embroiled in a series of corporate governance scandals.

JIP’s consortium includes 20 Japanese companies, led by chip maker Rohm (6963.T), financial services firm Orix (8591.T) and Chubu Electric Power (9502.T).

($1 = 148.3000 yen)

Reporting by Makiko Yamazaki; Editing by Christopher Cushing and Edwina Gibbs

Our Standards: The Thomson Reuters Trust Principles.

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