Toshiba to delist after Japanese Industrial Partners' $14 billion takeover

Toshiba delisting: Toshiba, a troubled electronics and energy giant, is set to be delisted from the Tokyo Stock Exchange following a successful 2 trillion yen ($14 billion) tender offer by a Japanese consortium. The offer, announced last month and concluded on Wednesday, saw the consortium purchase over 78.65 per cent of Toshiba's shares, surpassing the minimum requirement. The transition to Toshiba's new parent company and largest shareholder, TBJH Inc., is scheduled for September 27, subject to shareholder approval at a November meeting.

This marks a significant event in Toshiba's more than seven-decade history as a publicly listed company. After the delisting, Toshiba Group aims to navigate a new path under its new shareholder's ownership, focusing on strategies to enhance its value.

A leading brand behind rice cookers, TVs, laptops and other products once symbolic of Japan's technological prowess, Toshiba faced various challenges, including an accounting scandal in 2015 and issues related to its nuclear energy business. The company is tasked with the complex and expensive decommissioning of the Fukushima Dai-ichi nuclear power plant following the 2011 tsunami-induced meltdowns.

Challenges in gaining profitability 

Japan Industrial Partners, an association of Japanese banks and major companies, orchestrated the takeover bid, seen as Toshiba's last chance for a turnaround. The bid was accepted by Toshiba's board in March. The company had earlier spun off segments of its operations, including the priced flash-memory business now known as Kioxia, where it remains a major stakeholder.

However, uncertainties loom over Toshiba's profitability prospects, even with the impending delisting. The company reported a loss of 25 billion yen ($169 million) for the April-June quarter, with sales down nearly 5 per cent from the previous year. The Fukushima Dai-ichi nuclear plant decommissioning is anticipated to be a lengthy, decades-long effort.

Toshiba's US nuclear subsidiary, Westinghouse, filed for bankruptcy in 2017 following years of substantial losses due to escalating safety costs.

Toshiba's shares rose by 0.2 per cent to 4,604 yen ($31) in Tokyo on Thursday. The purchase price through the tender offer was set at 4,620 yen ($31) per share. The company anticipates completing the delisting within a month after the transition to TBJH Inc. on September 27.

(With PTI inputs)