Toshiba is going to be delisted after 74 years on the market because it has been acquired by a Japanese consortium led by private equity firm Japan Industrial Partners (JIP) in a $14 billion deal. The deal was completed on September 21, 2023, and Toshiba will delist from the Tokyo Stock Exchange and OTC markets within about a month.
There are a few reasons why Toshiba decided to go private. First, the company has been struggling financially in recent years, due to a number of factors including accounting scandals, heavy losses, and problems with its nuclear energy business. In 2018, Toshiba avoided bankruptcy by selling off its memory chip division which was widely seen as the crown-jewel of the company’s offerings. Second, Toshiba has been under pressure from activist investors who have been pushing for changes to the company’s management and strategy.
By going private, Toshiba hopes to gain more flexibility in making decisions and to avoid the scrutiny of public shareholders. The company also believes that the JIP consortium will be able to provide it with the resources and support it needs to turn around its business.
It is worth noting that Toshiba is not the only Japanese company to go private in recent years. A number of other large Japanese companies, such as Sharp and Panasonic, have also gone private in recent years. This trend is likely due to a number of factors, including the challenges that Japanese companies are facing in competing in the global marketplace and the desire of companies to have more control over their own destiny.
The delisting of Toshiba is a significant event in the history of Japanese business. Toshiba is one of the most iconic Japanese companies, and it has played a major role in the country’s economic development over the past century. However, the company’s decision to go private is a sign of the changing times, as Japanese companies are increasingly looking for ways to become more competitive in the global marketplace.