Toshiba privatizes after successful buyout by private equity fund JPL -update

Toshiba privatizes after successful buyout by private equity fund JPL -update

Toshiba’s proposed privatization will become final. The tech group will be owned by the private equity fund Japan Industrial Partners (JPL) following a successful buyout.

Update October 12th: Toshiba is set to be delisted from Tokyo’s stock exchange on December 20th. Shareholders will meet on November 22nd to approve the consolidation of the company’s shares.

The 12 billion euro ($13.7 billion) offer got approved and cleared the way for JPL to buy up the shares of remaining shareholders. JPL will then gain full control of the tech group, which makes Toshiba disappear from the Tokyo stock exchange. The company will now be in Japanese hands, which will look at how the company can regain more profits.

Years of uncertainty

Accepting the bid appears to be the final stage of certain years of uncertainty surrounding Toshiba. Since 2021, the tech conglomerate has been struggling to find a new direction. To regain the confidence of the stock market and that of customers, the Japanese tech group initially proposed a split into three parts. The group would be split into a part dedicated to energy and infrastructure, a part for device and storage and a financial business.

Revolution shareholders

Several investors made bids for the entire company, but management stood firm. Eventually, major shareholders turned against the split-off. As a result, Toshiba let go of this plan, and a sale was considered after all.

In the end, privatization and delisting turned out to be the best option.