According to an official statement released on Toshiba’s website, over half of the company’s shareholders have participated in a massive investment totaling US$13.5 billion, led by the private equity fund Japan Industrial Partners (JIP).
This acquisition has resulted in the company going private, marking the end of its 74-year run as a publicly traded entity.
Presently, JIP holds an impressive 78.65% stake in Toshiba, and they have expressed their intention to delist the company from the Tokyo Stock Exchange upon making a formal decision.
Notably, JIP intends to maintain Toshiba’s current leadership structure, including its CEO and management team. Founded in 1875, Toshiba has faced numerous challenges in recent years, including high-profile scandals and substantial losses dating back to 2015.
Its impending delisting marks a tumultuous period for the company. Once renowned for its groundbreaking technology, Toshiba was slapped with a historic fine in 2015 due to falsified financial records.
Subsequently, the company made an ill-fated venture into nuclear energy, resulting in a hefty $6.3 billion loss (approximately 45.99 billion yuan today), prompting them to divest their prized memory chip business – now operating under the name Kioxia Holdings Corp.
Initially, Toshiba planned to restructure itself into three separate entities in 2021, only to revise those intentions the following year in favor of a simpler two-part division.
Following this strategic shift, the former CEO stepped down from his position, accepting accountability for past mistakes, which ultimately led the company’s board members to explore opportunities to privatize.
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