Toshiba Delisted After 74 Years, Faces Future With New Owners
Toshiba (6502.T) was delisted on Wednesday. This happened after 74 years on the Tokyo exchange, following a decade of upheaval and scandal. It brought down one of Japan’s biggest brands and ushered in a buyout and an uncertain future. Read on to know more.
After 74 years on the Tokyo exchange, Toshiba will be delisted on Wednesday after a decade of turmoil and controversy that brought down one of Japan’s biggest companies and led to a buyout and an unclear future.
Private equity firm Japan Industrial Partners (JIP), financial services firm Orix, utility Chubu Electric Power, and chipmaker Rohm are taking the conglomerate private. Divestments should let Toshiba’s assets and talent reach their full potential.” Government officials in Japan will remain vigilant. It employs 106,000 people and performs national security-critical tasks. The board will include four JIP executives one each from Orix and Chubu Electric. A senior adviser from Sumitomo Mitsui Financial Group, Toshiba’s principal lender, will join the new management team.
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Toshiba was delisted after 74 years on the Tokyo Stock 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 https://t.co/NiHNdpFtcS pic.twitter.com/wimyWHwnk0
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Toshiba has begun investing $2.7 billion in power chip production facilities alongside Rohm. Ulrike Schaede, a University of California, San Diego professor of Japanese business, advised the corporation to exit lower-margin industries and improve its selling tactics for innovative products. Schaede said engineers may become key players if management allows them to innovate breakthroughly. Orix (8591.T), Chubu Electric Power (9502.T), and Rohm (6963.T) are among the investors taking the corporation private, led by private equity firm Japan Industrial Partners (JIP).
A $14 billion takeover puts Toshiba in domestic hands after protracted conflicts with overseas activist investors crippled the battery, semiconductor, and nuclear and defence equipment giant.
Toshiba “will now take a major step towards a new future with a new shareholder,” the company said, thanking stakeholders for their patience. Toshiba shares closed Tuesday at 4,590 yen, down 0.1%. Toshiba CEO Taro Shimada, who is continuing after the takeover, is likely to focus on high-margin digital services. Toshiba CEO Taro Shimada, who is continuing after the takeover, is likely to focus on high-margin digital services. Support for Shimada delayed JIP’s proposal to partner with a state-backed fund. Some industry insiders recommend dividing Toshiba.
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“Toshiba’s difficulties ultimately were caused by a combination of bad strategic decisions and bad luck,” said Macquarie Capital Securities Japan research head Damian Thong. The Japanese government will monitor. It employs 106,000 people and performs national security-critical tasks. The board will include four JIP executives one each from Orix and Chubu Electric. The new management team will include a senior adviser from Toshiba’s key lender, Sumitomo Mitsui Financial Group (8316.T). Power chip manufacturing is underway, with Toshiba and Rohm investing $2.7 billion in facilities. Ulrike Schaede, a University of California, San Diego professor of Japanese business, advised the corporation to exit lower-margin areas and improve its selling plans for innovative products.
