Skip to content

Search the site

Toshiba takes buyout offer of $14bn in privatization plan

Toshiba has accepted a buyout offer that would see the electronics giant remain under Japanese control as it looks to turn around its accounting

Japanese electronics giant Toshiba says it will be going private thanks to a $14bn domestic buyout offer.

Japan Industrial Partners (JIP) has finalized a $32 per share deal to acquire Toshiba and take the company private as a state-owned industry.

The merger dates back to a March proposal by the joint stakeholders to bail out Toshiba. While the company initially declined the buyout offer, the proverbial "uncertain macro-economic outlook, and the challenging environment" made the tech giant reevaluate its position.

JIP holds a number of Japanese properties including branches of Sony and Hitachi.

"In May 2021, in response to the change in its management, the Company decided to review its basic management policy," Toshiba said.

"At the same time, the Company announced the establishment of the Strategic Review Committee to support the Board in its decision-making by considering thoroughly and objectively the Company’s future in order to enhance the Company’s corporate value."

In making the decision Toshiba marks a turn in a company history spanning some 148 years. The conglomerate has for years been embroiled in controversy around it accounting practices and in 2022 the company saw CEO Satoshi Tsunakawa step down amidst an accounting scandal.

Toshiba's investment in nuclear power did not help matters, as the company took a publicity hit from the Fukushima Daiichi disaster adding on to its accounting scandals.

The hope is that, with the backing of JIP, Toshiba will be able to return to profitability and re-stablish itself as one of Japan's premier brands.

"Over the past 20 years since JIP’s founding, JIP has engaged in the revitalization of 20 or more large companies," JIP said in announcing the move.

"JIP has recognized that despite the fact that there are many major corporations each of which has accumulated sufficient management resources such as a customer base, technology, products and services, and human resources, but which is unable to demonstrate its latent potential because of reasons, such as failure to steadily implement individual measures and operations not running smoothly."

With the buyout offer having been made, investors will have until September 20 to approve the deal.