After a decade of turmoil and scandal that brought down one of Japan's largest companies and ushered in a takeover and an uncertain future, Toshiba was delisted on Wednesday after 74 years on the Tokyo exchange.
A group of investors led by private equity firm Japan Industrial Partners (JIP) is taking the conglomerate private. Other investors in the deal include financial services company Orix, utility Chubu Electric Power, and chip manufacturer Rohm.
After protracted conflicts with foreign activist investors that paralysed the manufacturer of batteries, electronics, nuclear, and defence equipment, Toshiba is now in domestic hands thanks to a $14 billion purchase.
In a statement, Toshiba stated that it "will now take a major step towards a new future with a new shareholder" and that it would appreciate ongoing cooperation and understanding from its stakeholders.
Toshiba's eventual form under its new owners is uncertain, although Taro Shimada, the company's chief executive who will remain in his position after the takeover, is anticipated to concentrate on high-margin digital services.
JIP's previous proposal to collaborate with a state-backed fund had been disrupted by its backing for Shimada. Industry insiders suggest that Toshiba could be better off being divided up.
"Toshiba's difficulties ultimately were caused by a combination of bad strategic decisions and bad luck," said Damian Thong, head of Japan research at Macquarie Capital Securities.
"I hope that through divestitures, Toshiba's assets and human talent can find new homes where their full potential can be unleashed."
The government of Japan will be closely monitoring this. About 106,000 people work for the corporation, and certain of its operations are thought to be vital to the security of the country.
The board will include four JIP executives and one representative from each of the investors Chubu Electric and Orix. A senior adviser from Sumitomo Mitsui Financial Group, Toshiba's primary lender, will join the new management team.
Already on the move, Toshiba and Rohm have teamed together to invest $2.7 billion in manufacturing facilities in order to jointly create power semiconductors.
Ulrike Schaede, a Japanese business professor at the University of California, San Diego, stated that the corporation has to exit lower-margin ventures and create more robust commercial plans for some of its cutting-edge products.
"If management can figure out a way to let those engineers truly engage in breakthrough innovation activities, they can emerge as an important player," Schaede said.
"They're a deep tech company."
(Source:www.newstoday.in)
A group of investors led by private equity firm Japan Industrial Partners (JIP) is taking the conglomerate private. Other investors in the deal include financial services company Orix, utility Chubu Electric Power, and chip manufacturer Rohm.
After protracted conflicts with foreign activist investors that paralysed the manufacturer of batteries, electronics, nuclear, and defence equipment, Toshiba is now in domestic hands thanks to a $14 billion purchase.
In a statement, Toshiba stated that it "will now take a major step towards a new future with a new shareholder" and that it would appreciate ongoing cooperation and understanding from its stakeholders.
Toshiba's eventual form under its new owners is uncertain, although Taro Shimada, the company's chief executive who will remain in his position after the takeover, is anticipated to concentrate on high-margin digital services.
JIP's previous proposal to collaborate with a state-backed fund had been disrupted by its backing for Shimada. Industry insiders suggest that Toshiba could be better off being divided up.
"Toshiba's difficulties ultimately were caused by a combination of bad strategic decisions and bad luck," said Damian Thong, head of Japan research at Macquarie Capital Securities.
"I hope that through divestitures, Toshiba's assets and human talent can find new homes where their full potential can be unleashed."
The government of Japan will be closely monitoring this. About 106,000 people work for the corporation, and certain of its operations are thought to be vital to the security of the country.
The board will include four JIP executives and one representative from each of the investors Chubu Electric and Orix. A senior adviser from Sumitomo Mitsui Financial Group, Toshiba's primary lender, will join the new management team.
Already on the move, Toshiba and Rohm have teamed together to invest $2.7 billion in manufacturing facilities in order to jointly create power semiconductors.
Ulrike Schaede, a Japanese business professor at the University of California, San Diego, stated that the corporation has to exit lower-margin ventures and create more robust commercial plans for some of its cutting-edge products.
"If management can figure out a way to let those engineers truly engage in breakthrough innovation activities, they can emerge as an important player," Schaede said.
"They're a deep tech company."
(Source:www.newstoday.in)
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