The move comes after years of turmoil for the company, which once symbolised Japan’s economic might but more recently has been mired in scandals, financial turmoil and resignations. File picture
Toshiba said a previously announced scheme to take the troubled Japanese conglomerate private in a deal worth around $14 billion (R260bn) will launch on Tuesday.
The move comes after years of turmoil for the company, which once symbolised Japan’s economic might but more recently has been mired in scandals, financial turmoil and resignations.
The Japan Industrial Partners-led consortium taking control in the nearly ¥2 trillion (about R260 billion) deal includes 17 Japanese firms and six Japanese banks.
In March, Toshiba said the tender offer would be called off if the consortium failed to buy at least 66.7% of the outstanding shares.
The price is set at ¥4 620 per share and the period 30 business days, according to the website on the tender offer, slightly higher than Monday’s closing price of ¥4 584.
Toshiba yesterday reported a net loss of ¥25.3bn for the first quarter because of a drop in demand at chip firm Kioxia, in which it retains a 40% stake.
Two years ago, a bombshell buyout offer from private equity fund CVC Capital Partners put a question mark 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.
AFP