Toshiba Board Accepts Japan Industrial Partners’ $15.2B Buyout

Toshiba’s board announced on Thursday that they had accepted a buyout offer of $15.2 billion from a group of investors led by private equity firm Japan Industrial Partners. The buyout is expected to close in the second half of 2023.

If the transaction goes as planned, the turbulent public scandal might soon be over for this industrial conglomerate, as it would shift to becoming privately owned and managed by those based domestically. There has been considerable pressure from foreign shareholders on this matter.

Read more: Japan’s Toshiba Mulls Going After Proposal Public

Some 20 Japanese companies including financial services firm Orix Corp, chipmaker Rohm and Chubu Electric Power plan to take part in the deal, sources have said. It would be the third-largest M&A transaction globally so far this year, according to Refinitiv data.

“This ends months of uncertainty regarding whether a deal was coming and years of uncertainty regarding Board understanding of the right price,” said analyst Travis Lundy of Quiddity Advisors, who publishes on Smartkarma.

“This would provide a lot of activists a way out, even if it is not what they hoped for. The question is whether ‘Toshiba Fatigue’ is strong enough to overcome disappointment on price.”