Toshiba to accept $15.2bn buyout offer from Japanese equity firm

The acquisition would value Toshiba at 4,620 yen per share or 2 trillion yen in total

Toshiba has accepted an offer of $15.2bn from TBJH, owned by private equity firm Japan Industrial Partners (JIP) in a move to privatise the company.

Toshiba had been considering alternative growth strategies since April 2022, the tech vendor revealed.

The acquisition would value Toshiba at JPY4,620 per share or JPY2 trillion in total.

Reuters reported that it is still unclear whether activist funds, which are estimated to own roughly a quarter of the company, will be satisfied with the terms.

The offer price would give just a 9.7 per cent premium over the closing price of JPY4,213.

Toshiba said in a filing that the board would not go as far as recommending shareholders tender their shares, because the offer price was not high enough to give recommendations.

The price was lowered a few times from an initial offer of up to JPY5,500 per share, according to the filing.

The company commented: "By realising this transaction, we aim to establish a stable management structure for Toshiba and to implement a new growth strategy quickly."

"We intend to further develop each business by better responding to the needs of Toshiba's customers, implementing growth strategies by developing new technologies, and making workplaces more rewarding for executives and employees of Toshiba.

"At the same time, we will devote ourselves to expanding Toshiba's business in a way that meets the needs of the new era and society."

Hidemi Moue, director and CEO of JIP commented on the acquisition: "We sincerely hope that we can work together with Toshiba management, who are striving to execute its new growth strategy to meet the future needs of society.

"Since 2002, we have been investing to support the growth of Japanese business companies, and we would like to provide support tailored to the characteristics of Toshiba's business, taking advantage of the past experience of JIP."

Shinichi Inagaki, the executive officer of TBJH, also added: "We are confident that this transaction, supported by a large number of Japanese business companies, institutional investors, banks, and other financial institutions who have willingly participated in this transaction, is the best transaction not only for Toshiba but also for its business partners and many other stakeholders.

"We will do our utmost to live up to the expectations of Toshiba's stakeholders."