Toshiba Confirms Success of $14 Billion Takeover Bid by JIP

JIP’s $14 Billion Takeover Bid for Toshiba was declared a Triumph

Toshiba announced on Thursday that the private equity company Japan Industrial Partners’ $14 billion tender offer had been successful, paving the way for the struggling industrial behemoth to go private. The Jip-led consortium received 78.65% of the Tosibha shares tendered, giving the group a majority of more than two-thirds of the remaining shareholdings.

• After years of conflicts with international activist shareholders, Dometic has acquired the electronics to power the station makers. Toshiba accepted the buyout offer in March, valuing the industrial group at 2 trillion yen ($13.5 billion).

• Although several shareholders were dissatisfied with the price provided, Toshiba said that there was no chance of a higher or rival proposal.

• Toshiba Chief Executive Taro Shimada said in a statement on Thursday, “We are deeply grateful to many of our shareholders for understanding the company’s position.” Toshiba will now take a key step toward a new future under new ownership.

• Despite its lack of International Recognition, JIP has been involved in corporate carve-outs and spin-offs from Japanese companies such as the Olympus Camera Company and the Sony Group’s Laptop Computer Business.

• Toshiba said the complex relationships with the various stakeholders, including the different opinions they hold, have hampered business operations and that a stable shareholding would help the company pursue its long-term strategy.

Toshiba Management also faces pressure from the funds of activists since it has sold 600 billion yen, which is equal to 4 billion dollars of stocks, to a dozen foreign hedge funds during the crisis that erupted after the bankruptcies of its US nuclear power unit in 2017. The conglomerate was collaborating with the Japanese trade industry, and the two are engaged in preventing international investors from obtaining the power at its 2020 shareholder meeting.

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