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.

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

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.

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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)

Reported by Makiko Yamazaki; Editing: Christopher Cushing and Edwina Gibbs

Our Standards: Thomson Reuters Trust Principles.

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