ANN/THE STRAITS TIMES – Toshiba was delisted on December 20 after 74 years on the Tokyo exchange, following a decade of upheaval and scandal that brought down one of Japan’s biggest brands and ushered in a buyout and an uncertain future.
The conglomerate is being taken private by a group of investors led by private equity firm Japan Industrial Partners (JIP) that also includes financial services firm Orix, utility Chubu Electric Power and chipmaker Rohm.
The USD14 billion takeover puts Toshiba in domestic hands after protracted battles with overseas activist investors that paralysed the maker of batteries, chips and nuclear and defence equipment.
Toshiba “will now take a major step towards a new future with a new shareholder”, the company said in a statement, adding that it would appreciate continuous understanding and support from its stakeholders.
Toshiba shares ended on December 19, their last trading day, at JPY4,590, down 0.1 per cent from the previous day.
Although it is not clear what shape Toshiba will ultimately take under its new owners, chief executive Taro Shimada, who is staying in his role following the buyout, is expected to focus on digital services.
JIP’s support for Shimada had derailed its earlier plan to team up with a state-backed fund.
Some industry insiders say splitting up Toshiba may be a better option.
“Toshiba’s difficulties ultimately were caused by a combination of bad strategic decisions and bad luck,” said Macquarie Capital Securities head of Japan research Damian Thong.
