Toshiba has concluded its 74-year run as a publicly listed company as a consortium, led by Japan Industrial Partners (JIP), successfully completes the buyout. The privatization marks the end of a tumultuous period for the Japanese conglomerate, plagued by various issues since 2015. The troubles included accounting malpractices, nuclear power plant-related charges, and a contentious chip unit sale. Toshiba’s decision to split into three companies in 2021 and subsequent attempts to restructure faced shareholder resistance, including a failed spin-off plan in March 2022.
Amid pressure and investor interest, Toshiba announced in May 2022 that it received eight buyout proposals. After shareholder approval of activist directors, four bidders, including private equity firms Bain Capital and CVC Capital Partners, entered a second round. In October 2022, the JIP-led consortium gained preferred status. In February 2023, Toshiba confirmed a proposal from an all-Japanese group led by JIP, securing $10.6 billion in loan commitments. By March 2023, Toshiba’s board accepted JIP’s 2 trillion yen tender offer, marking a significant milestone. The privatization process, initiated in August 2023, has now concluded, ending Toshiba’s lengthy history as a publicly traded company on December 20, 2023.
