- Toshiba’s Long History Comes to an End
- Majority Stake Acquisition by Japan Industrial Partners (JIP)
- Toshiba’s Challenges and Shift Toward Privatization
The group’s ownership of more than two-thirds of the company enables it to conclude a $14 billion (£11.4 billion) deal to take it private.
The company began making telegraph equipment in 1875.
Under the terms of the agreement, its stock could be removed from the market as early as the end of this year.
In 1985, Toshiba introduced the “world’s first mass-market laptop computer,” according to the company.
In recent years, the Tokyo-based company has experienced several significant setbacks.
“Toshiba’s debacle is a result of inadequate corporate governance at the top,” said Gerhard Fasol, CEO of business advisory firm Eurotechnology Japan.
In 2015, it admitted to overstating its profits by more than $1 billion over six years and paid the largest fine in the country’s history at the time: 7.37 billion yen ($47 million; £38 million).
Since then, Toshiba has received multiple takeover offers, including one in 2021 from the British private equity firm CVC Capital Partners, which it rejected.
Mr. Fasol stated, “In the eyes of many Japanese citizens and the government in particular, Toshiba is a national treasure, which is part of the problem.”
The company then announced its intention to split into three separate enterprises. The board changed the idea months later to split the firm into two.
Before implementing the revised separation plan, the board considered JIP’s privatisation proposal.
Marc Einstein, chief analyst at Tokyo-based research and advisory firm ITR Corporation, remarked, “The company must radically reinvent itself after spinning off many of its core business units, notably its semiconductor group.”