Toshiba Aims for Private Status with $14B Tender Offer

Toshiba Corporation is set to become private if a ¥2 trillion ($14 billion) tender offer by TBJH, Inc., a subsidiary of Japan Industrial Partners, Inc. (JIP), is successful. The offer, slated for launch on Tuesday, aims to purchase all of Toshiba’s shares on the Tokyo and Nagoya Stock Exchanges.

“Today marks a turning point for Toshiba. The company is coming out of a tunnel after eight years,”

Akihiro Watanabe, Chairperson of the Toshiba Board of Directors

Although initially skeptical of the ¥4,620 per-share ($32.44) bid from JIP, citing it as too low, Toshiba’s board later found the offer reasonable amid current economic challenges. However, the deal hinges on two-thirds of Toshiba shareholders agreeing to tender their shares. A parallel merger discussion between chipmaker Kioxia Holdings and Western Digital may impact the deal’s final valuation, given Toshiba’s 40.6% stake in Kioxia.

Akihiro Watanabe, Toshiba’s board chairperson, expressed hope for the company’s future, stating the offer marked a significant juncture for the beleaguered conglomerate, which hopes to move past eight tumultuous years. The tender offer remains open until September 20.

Toshiba has had a tumultuous recent history. In 2021, CVC Capital Partners pitched a $21 billion offer to privatize the company, leading to the sudden departure of CEO Nobuaki Kurumatani amid controversies. Later in November 2021, Toshiba proposed splitting into three companies, then only two, a plan that shareholders eventually turned down in March 2022.

Despite its troubled past, marred by accounting scandals and massive losses in its Westinghouse nuclear subsidiary, Toshiba aims for a fresh start. In recent business moves, Toshiba confirmed the sale of a portion of its Toshiba Tec stake, though it retained a majority, and announced a collaborative manufacturing agreement with Ricoh for printer and MFP production.

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– Greg Walters, Head Writer