Toshiba has been delisted after 74 years on the Tokyo exchange, following a decade of upheaval and scandal that brought down one of Japan’s biggest brands and ushered in a buyout and an uncertain future.
The conglomerate has been taken private by a group of investors led by private equity firm Japan Industrial Partners (JIP) which also includes financial services firm Orix, utility Chubu Electric Power and chipmaker Rohm.
The $14 billion takeover puts Toshiba in domestic hands after protracted battles with overseas activist investors that paralysed the maker of batteries, chips, and nuclear and defence equipment.
Chief Executive Taro Shimada, who is staying in his role following the buyout, is expected to focus on high-margin digital services.
JIP’s support for Shimada had derailed its earlier plan to team up with a state-backed fund. Some industry insiders say splitting up Toshiba may be a better option.
“Toshiba’s difficulties ultimately were caused by a combination of bad strategic decisions and bad luck,” said head of Japan research at Macquarie Capital Securities, Damian Thong.
– economictimes.com
