Toshiba says JIP’s $14 billion takeover bid has been successful

The Toshiba Corporation logo is displayed at the company’s building in Kawasaki, Japan, on April 5, 2023. REUTERS/Androniki Christodoulou/File Photo Obtaining licensing rights

TOKYO (Reuters) – Toshiba (6502.T) said on Thursday that a $14 billion bid by private equity firm Japan Industrial Partners (JIP) had ended in success – a deal that paves the way for the struggling industrial conglomerate to go private.

The JIP-led consortium saw 78.65% of Toshiba shares floated, giving the group a majority of more than two-thirds which would be enough to put pressure on remaining shareholders.

The deal puts the electronics-to-power plant manufacturer in local hands after years of battles with overseas activist shareholders.

Toshiba in March accepted a takeover offer that valued the industrial group at 2 trillion yen ($13.5 billion). Although some shareholders were not satisfied with the price offered, Toshiba said there was no possibility of a higher or competing offer.

“We are very grateful to our many shareholders for understanding the company’s position,” Toshiba CEO Taro Shimada said in a statement Thursday. He added that Toshiba “will now take a big step towards a new future with a new shareholder.”

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

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

JIP plans to retain CEO Shimada and his management team.

Since 2015, Toshiba has been hit by accounting scandals, suffered huge losses, and came close to being delisted. It has also been implicated in a series of corporate governance scandals.

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The JIP consortium includes 20 Japanese companies, led by chipmaker Rohm (6963.T), financial services company Orix (8591.T) and Chubu Electric Power (9502.T).

($1 = 148.3000 yen)

(Reporting by Makiko Yamazaki) Editing by Christopher Cushing and Edwina Gibbs

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