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Toshiba says $14 bn offer to go private set to succeed

Toshiba, which once symbolised Japan's economic might, has recently been mired in scandals, financial turmoil and resignations
Toshiba, which once symbolized Japan's economic might, has recently been mired in scandals, financial turmoil and resignations.

Toshiba said on Wednesday that a $14 billion tender offer to take the troubled Japanese conglomerate private is set to succeed.

The announcement comes after a takeover scheme to delist Toshiba launched last month by a Japan Industrial Partners-led closed on Wednesday.

"We have received a from the offeror that the tender offer is forecasted to be successful," Toshiba said in a statement.

The final results will be announced once the receives it, it said.

In March, Toshiba said the tender offer would be called off if the consortium failed to buy at least 66.7 percent of the outstanding shares.

The consortium taking control in the nearly two trillion yen deal includes 17 Japanese firms and six Japanese banks.

Toshiba, which once symbolized Japan's economic might, has recently been mired in scandals, financial turmoil and resignations.

Two years ago, a bombshell buyout offer from private equity fund CVC Capital Partners put a over the conglomerate's future.

After the CVC offer was dropped, plans were floated to split the company up and spin off its device segment—meeting stiff opposition from some investors.

Toshiba grew into a vast conglomerate, but has been in upheaval since it was rocked by a profit-padding scandal in 2015.

The company also suffered from huge losses at its US nuclear subsidiary, followed by a recovery that brought pressure from new activist shareholders.

© 2023 AFP

Citation: Toshiba says $14 bn offer to go private set to succeed (2023, September 20) retrieved 1 March 2024 from https://techxplore.com/news/2023-09-toshiba-bn-private-succeed.html
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