Toshiba, the renowned Japanese electronics company, has made headlines this week as it officially delisted from the Tokyo stock exchange after an impressive 74 years. The move comes after the company was taken private in a hefty £11bn deal by a consortium of investors led by Japan Industrial Partners (JIP), in a bid to revive the struggling company.
In addition to JIP, the investor group includes Orix, Chubu Electric Power, and Rohm. Over the years, Toshiba has faced significant pressure from activist investors due to an accounting scandal that plagued the company. To turn things around, Toshiba has taken strategic steps, such as striking a deal with Rohm to manufacture chips.
However, some experts believe that breaking up the company might be the key to unlocking its true value. Despite its recent setbacks, Toshiba has an extensive history, with its origins dating back to a factory established in 1875. It was in 1978 that the company adopted the name Toshiba, marking the beginning of its legacy as a leader in the electronics industry.
The company’s troubles began in 2015 when an investigation was launched into the overstatement of profits. Given Toshiba’s importance to national security, Japan’s government will be closely monitoring the situation. This development brings changes to Toshiba’s board, as four JIP executives, along with executives from Orix and Chubu Electric, will join the company’s leadership. It is worth noting that the newly formed board is composed entirely of men, with a senior adviser from Sumitomo Mitsui Financial Group also included.
Amidst the delisting from the stock exchange, Toshiba expressed gratitude to its shareholders and stakeholders for their unwavering support. The company looks forward to embarking on a new future with its new shareholders, as it takes steps towards regaining its former glory.
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