Toshiba to Be Sold

Toshiba to Be Sold

According to Reuters, Toshiba board has accepted a $15.2 billion buyout offer from a group led by private equity firm Japan Industrial Partners.

The deal, once completed, is said to be the third-largest transaction globally this year, according to Refinitiv data. The deal will see Toshiba taken private and firmly in domestic hands after much tension with overseas activist shareholders.

The consortium, comprising Japan Industrial Partners and its followers, submitted a binding buyout proposal backed by $10.6 billion in loans from major banks.

The bid is said to be “the only complete proposal” that has been submitted during a one-year competitive auction process, offering a chance for shareholders to exit their investments.

As some board members were dissatisfied with its offer price, it took weeks for Toshiba board to proceed with a vote on Japan Industrial Partners’ proposal.

The consortium plans to start the tender offer in late July, before what time any change is possible.

Since 2015, Toshiba has been battered by accounting scandals and heavy losses and came close to being delisted before becoming engulfed in a series of corporate governance scandals.

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