Toshiba board approves JIP’s $15-billion buyout offer

Toshiba Corp’s board yesterday accepted a $15 billion buyout offer from a group led by private equity firm Japan Industrial Partners, the Nikkei business daily reported, potentially drawing a line under years of upheaval for the company.

A successful deal would see JIP and its fellow investors — including Orix Corp, Rohm Co and Chubu Electric Power — acquire one of Japan’s best-known companies. It would also be the third-largest transaction globally so far this year, according to Refinitiv data.

Toshiba, a sprawling conglomerate whose businesses span nuclear power, defence technology and which owns 40% of memory chip maker Kioxia Holdings, declined immediate comment.

Since 2015, Toshiba has been battered by accounting and corporate governance scandals, heavy losses as well as friction with activist investors that led to a strategic review.

“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.”

The JIP consortium last month submitted a binding buyout proposal backed by $10.6 billion in loan commitments from major banks.

It has taken weeks for the board to proceed with a vote on JIP’s proposal as some board members were dissatisfied with its offer price, sources have said.

Shares of Toshiba have fallen 12% over the last year, underperforming a 2.2% decline in the Nikkei 225 average.