Toshiba Corporation, the iconic Japanese conglomerate that has faced years of turmoil, scandals, and financial instability, announced on Wednesday that a $14 billion tender offer to privatize the company is on track to succeed. The news follows the recent launch of a takeover scheme by a consortium led by Japan Industrial Partners, with Toshiba set to go private as a result.
In a statement, Toshiba confirmed the positive outlook, saying, “We have received a report from the offeror that the tender offer is forecasted to be successful.” However, the company noted that the final results will be disclosed once officially received.
Earlier this year, in March, Toshiba had declared that the tender offer would be abandoned if the consortium failed to acquire a minimum of 66.7 percent of the outstanding shares. The consortium, which comprises 17 Japanese firms and six Japanese banks, is taking control of Toshiba in a deal valued at nearly two trillion yen.
Toshiba, once a symbol of Japan’s economic prowess, has faced a series of challenges and controversies in recent years. In 2021, the conglomerate received a buyout offer from private equity fund CVC Capital Partners, which raised uncertainty about its future. However, the CVC offer was ultimately withdrawn.
Subsequently, discussions were held regarding the potential split of the company and the spin-off of its device segment. These proposals encountered resistance from some investors, adding to the company’s complex corporate landscape.
Toshiba’s troubles began in 2015 when it was embroiled in a profit-padding scandal, leading to significant reputational damage. Later, the company incurred substantial losses at its U.S. nuclear subsidiary, followed by a period of recovery that attracted attention from new activist shareholders.
The ongoing privatization process represents a significant development in Toshiba’s long and tumultuous journey, marking a potential turning point for the once-mighty conglomerate. As the company moves towards privatization, the outcome will undoubtedly be closely monitored by stakeholders and industry observers alike.