BackJIP buys 78.65% share of Toshiba through tender offer, close to complete $14 billion takeover
Japan Industrial Partners-led consortium gains 78.65% stake in Toshiba, bringing the $14bn deal to take the company private a step closer.
PremiumInching a step closer to complete a $14 billion deal, Japan Industrial Partners (JIP), bought 78.65% share of Toshiba through a tender offer, said the Japanese firm.
After owning of more than two-third majority stake of the company, it would be easier for JIP group to squeeze out remaining shareholders. The step will enable Toshiba to be delisted as early as December, ending its 74-year history as a listed firm.
The JIP takeover will finally, put the electronics-to-power stations maker in domestic hands. After years of battles with overseas activist shareholders.
JIP includes around 20 Japanese firms including financial services firm Orix and chipmaker Rohm. In March, Toshiba accepted JIP's buyout offer valuing the industrial conglomerate at 2 trillion yen (equal to $13.5 billion). The deal was accepted with no prospects of a higher offer or competing bid despite a few members found the 4,620 yen per share offer price was considered by some as unsatisfactory.
"We are deeply grateful to many of our shareholders for being understanding of the company's position," Toshiba Chief Executive Taro Shimada said in a statement on Thursday. Toshiba "will now take a major step toward a new future with a new shareholder".
For last one decade, Toshiba is grappling with a range of issues including accounting scandals, heavy loss. This brought the firm close to being delisted. It has also been engulfed in a series of corporate governance scandals.
Toshiba'a management also faced pressure from activist funds since it sold 600 billion yen ($4.9 billiin) of stock to dozens of foreign hedge funds during a crisis erupted after the bankruptcy of its US nuclear power unit in 2017.
In a probe commissioned by shareholders, it was found that the conglomerate was colluded with Japan's trade ministry. The two were indulged to block overseas investros from gaining influence at its 2020 shareholder meeting.
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