Toshiba tries to buy itself out of stock market

Toshiba tries to buy itself out of stock market

Japanese tech group Toshiba wants to privatize itself. This should bring an end to years of turmoil surrounding the future of the tech conglomerate.

Toshiba wants to corporatize itself through a buyout of all outstanding shares, according to recent communications from the concern. To this end, the tech giant is making available 12.8 billion euros ($14 billion) as of today.

The value of a Toshiba share is estimated at 29 euros ($32) per share. Two-thirds of shareholders must sell their shares to Toshiba for the privatization to proceed.

Staying in Japanese hands

The buyout is being led by Japanese investment company Japan Industrial Partners (JIP) and financed by several Japanese banks and companies.

Among other things, the now-announced corporatization should keep the company in Japanese hands. Also, the corporatization could ensure a return to profitability, it is thought.

Years of unrest

The buyout should end years of unrest about Toshiba’s future. Due in part to the fallout from an accounting scandal, the tech group has struggled to find a new direction since 2021.

To regain stock market confidence and that of customers, the Japanese tech group initially proposed a split into three parts. The group would be split into an energy and infrastructure part, a device and storage part and a financial business.

Several investors made bids for the entire company, but management stood firm. Eventually, major shareholders turned against the breakup plan. As a result, Toshiba stopped this plan and a sale was considered after all. So this plan, too, has now failed.

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