End Of An Era: Toshiba Delisted From Tokyo Stock Exchange After 74 Years

Japanese tech giant Toshiba Corp (OTC:TOSBF), (OTC:TOSYY) concluded its 74-year presence on the Tokyo stock exchange on Wednesday, bringing an end to a tumultuous decade marked by scandals and a substantial $14 billion buyout.

What Happened: The tech behemoth will now shift to private ownership under a consortium led by Japan Industrial Partners (JIP) and including Orix Corp, Chubu Electric Power Co. Inc., and Rohm Co Ltd, as reported by Reuters.

This change comes in the wake of a sequence of controversies and overseas investor disputes that heavily impacted the company’s operations. The future of Toshiba under its new ownership is not yet clear, but it is expected that CEO Taro Shimada will focus on high-profit digital services.

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The board of Toshiba will be joined by four executives from JIP, one representative each from Orix and Chubu Electric, and a senior advisor from Sumitomo Mitsui Financial Group Inc, the main lender for Toshiba.

Under the new ownership, Toshiba has already partnered with investor Rohm to invest $2.7 billion in manufacturing facilities for power chip production.

Why It Matters: Toshiba was valued at $16 billion in the takeover bid in October 2022.

In September 2023, the $14 billion tender offer from JIP was successful, enabling the troubled tech conglomerate to go private. The successful completion of the tender offer was confirmed with the tendering of 340.46 million shares exceeding the minimum required.

Toshiba’s delisting and the shift to private ownership will now be under the scrutiny of the Japanese government, as the company is deemed crucial to national security and employs around 106,000 people.

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Image by Eric G. On Flickr