A consortium led by Japan Industrial Partners (JIP) has successfully acquired a commanding 78.65% stake in Toshiba through a tender offer, marking a significant stride toward the company’s $14 billion privatization deal.
This majority ownership position empowers JIP to potentially buy out the remaining shareholders. As a consequence of this transaction, Toshiba is set to be delisted and held by domestic entities.
The consortium, spearheaded by the private equity firm Japan Industrial Partners, has secured 78.65% ownership of Toshiba through the tender offer, advancing the firm closer to finalizing the $14 billion deal to take it private.
With more than a two-thirds majority now in its grasp, the JIP consortium has the potential to compel the remaining shareholders to sell their holdings.
Toshiba is on track to be delisted from public markets as early as December, marking the end of its 74-year history as a publicly traded company.
This deal marks a pivotal moment for Toshiba, shifting the control of the conglomerate into the hands of domestic entities after years of contentious battles with foreign activist shareholders.
JIP’s consortium boasts the participation of roughly 20 Japanese companies, including financial services firm Orix and chipmaker Rohm.
Back in March, Toshiba accepted JIP’s buyout proposal, valuing the industrial conglomerate at 2 trillion yen ($13.5 billion).
This decision came with the understanding that there were no prospects for a higher offer or competing bids, despite some shareholders considering the 4,620 yen per share offer price unsatisfactory.
Toshiba has faced a tumultuous period since 2015, grappling with accounting scandals, substantial losses, and the looming threat of delisting. The company has also been embroiled in various corporate governance controversies.