Toshiba says $14 billion acquisition bid by JIP successful

TOKYO, Sept 21 (Reuters) – Toshiba ( 6502.t ) said on Thursday that a $14 billion tender offer from private equity firm Japan Industrial Partners (GIP) had successfully concluded – a deal that would pave the way for the troubled industrial giant. Go private.

The JIP-led consortium tendered 78.65% of Toshiba shares, giving the group a two-thirds majority, which would be enough to oust the remaining shareholders.

The deal puts the electronics-to-power station maker in domestic hands after years of wrangling with foreign activist shareholders.

In March, Toshiba accepted an offer to buy the industrial conglomerate worth 2 trillion yen ($13.5 billion). Although some shareholders were unhappy with the price offered, Toshiba argued that there was no chance of a higher offer or competing bid.

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

Toshiba has said that its complicated relationships with various stakeholders, including those with different views, have hampered business operations and that a stable stakeholder 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 of Japanese companies including Olympus’ ( ​​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 irregularities, suffered huge losses and came close to delisting. It is also mired in a series of corporate governance scandals.

GIP’s consortium consists of 20 Japanese companies led by chipmaker ROM ( 6963.T ), financial services company Oryx ( 8591.T ) and Tsubu Electric Power ( 9502.T ).

($1 = 148.3000 yen)

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