On December 20, 2023, Toshiba Corporation, a famous Japanese electronics brand, will delist after 74 years of existence on the Tokyo Stock Exchange.
According to Reuters, the group is being acquired by a group of private investors, led by Japan Industrial Partners (JIP), financial services company Orix, utility company Chubu Electric Power, and chip maker Rohm.
Toshiba prepares to delist shares after 74 years of existence on the Japanese stock exchange (Photo TL)
The $14 billion acquisition of Toshiba has returned the group to Japanese investors after a long period of conflict with foreign investors, which is also believed to have affected chip production, nuclear equipment and defense.
It remains unclear how Toshiba will ultimately restructure under its new owners, but Taro Shimada remains CEO. The group is expected to focus on developing high-margin digital services.
"The difficulties Toshiba has encountered come from bad strategic decisions and bad luck. I hope that through this divestment, Toshiba's personnel will turn a new page to fully develop their potential," said Damian Thong, head of Japan research at Macquarie Capital Securities.
The Japanese government will closely monitor Toshiba's actions in the coming period. The group currently has about 106,000 employees, some of which are subsidiaries that play an important role in Japan's national security.
Ulrike Schaede, a professor of Japanese economics at the University of California, Berkeley, said Toshiba needs to move away from its low-margin business and develop more aggressive commercial strategies for some of its advanced technologies.
The company has been through a lot over the past eight years, from the 2011 tsunami that shut down its Fukushima Dai Ichi plant to a 2015 accounting scandal involving falsified earnings figures.
An unsuccessful attempt to enter the US nuclear energy market also resulted in a loss of $6.3 billion. In the second quarter of 2023, Toshiba also had to announce a loss of 25 billion yen while sales reached only 704 billion yen, down 5% compared to the same period last year.
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