A group of investors led by Japan Industrial Partners (JIP) privatized Toshiba. Besides JIP, the group also included financial services firm Orix, utility company Chubu Electric Power, and chipmaker Rohm.

They spent $14 billion to take over Toshiba after a protracted battle with overseas investors that crippled the Japanese manufacturer of batteries, chips, nuclear equipment, and defense products.

While the future of Toshiba under new ownership remains unclear, CEO Taro Shimada, who retains his position at the helm, is expected to focus on highly profitable digital services.

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Toshiba is currently owned by a consortium of Japanese investors. (Photo: Reuters)

JIP's support for Shimada derailed a previous partnership plan with a state-backed fund. Some in the industry believe that splitting Toshiba might be a better option.

Damian Thong, head of Japan research at Macquarie Capital Securities, commented that Toshiba's demise was a combination of poor strategic decisions and bad luck.

Nevertheless, he hopes that through divestment, Toshiba's assets and human talent can find new homes where their full potential can be unleashed.

The Japanese government will closely monitor Toshiba. The company employs around 106,000 people, and some of its operations are considered critical to national security.

Four JIP executives will join the board of directors, as well as each from investors Orix and Chbu Electric. The new management team also includes a senior advisor from Toshiba's principal lender, Sumitomo Mitsui Financial Group.

Toshiba has taken a new step, partnering with Rohm to invest $2.7 billion in factories to jointly produce power chips.

According to Ulrike Schaede, a professor of Japanese business at the University of California, Toshiba needs to move away from low-profit business activities and develop stronger commercial strategies for some of its advanced technologies.

"If leadership can find a way to get those engineers genuinely involved in disruptive innovation, they could emerge as a key player," Schaede said.

(According to Reuters)

Toshiba accepts sale for $15 billion . According to Bloomberg, Toshiba has accepted a takeover offer from a domestic consortium, closing a sad chapter in its more than 140-year history.