Toshiba announced on Thursday (21 Sept) that private equity firm Japan Industrial Partners’ (JIP) $14bn tender offer was successful which will see the electronics company to go private.
The takeover could see Toshiba delisted as soon as December.
The company accepted the buyout offer in March in an effort to put an end to the several years-long scandals which have plagued the conglomerate.
Since Toshiba’s disclosure in 2015 that it has overstated pretax profit by $1.8bn over seven years, the 148-year-old company has been embroiled in malpractice scandals which have infuriated investors.
Shareholders ousted chairman Osamu Nagayama in 2021 following a probe commissioned by shareholders that found Toshiba had conspired with Japan’s Ministry of Economy, Trade and Industry (METI) to block foreign investors from gaining board influence
A 147-page report released in 2021 revealed damning details about the collaboration between the company and the government.
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It alleged that Japanese Prime Minister Yoshihide Suga, who was chief cabinet secretary at the time, received updates on activists’ campaigns ahead of the July 2020 annual meeting, which the report ultimately concluded was “not fairly managed”.
Later, in 2022, CEO Satoshi Tsunakawa resigned and the company appointed an interm CEO.
Toshiba Chief Executive Taro Shimada said in a statement: “We are deeply grateful to many of our shareholders for being understanding of the company’s position.”