Toshiba board accepts $15bn buyout offer

Toshiba board accepts $15bn buyout offer

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Toshiba’s board has accepted a US$15 billion buyout offer from a consortium led by Japan Industrial Partners (JIP).

The deal was approved by Toshiba’s board last week and represents a nearly 10% premium on the stock closing price in Tokyo.

It is expected that the company will be taken private upon completion of the deal.

If the sale were to go through, it will become one of the biggest private equity-led takeovers in Japan’s history.

Since a major accounting scandal in 2015, the Japanese vendor has sold multiple divisions and cut around 8,000 jobs.

The company also exited the PC market in 2020 and has seen its share value plummet by 11% over the last 12 months.

And in 2017, it opted for emergency insurance of US$5.4 billion worth of new equity in a deal curated by Goldman Sachs.

Despite that, Toshiba remains a leading tech giant in Japan with companies such as Rohm Co and Chubu Electric Power hoping to participate in the buyout according to Reuters.

Company shares increased after the firm received a US$20 billion offer from CVC in April 2021, but this deal collapsed.

Last month, Toshiba lowered its profit forecast for the fiscal year through March to US$1 billion from an earlier projection of US$1.5 billion.

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