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Domestic ownership marks a turning point for Toshiba after battles with overseas investors.
Toshiba Corporation has successfully concluded a $14 billion takeover that puts the company under domestic ownership, marking a significant shift after prolonged battles with overseas activist investors. The takeover, which brings Toshiba’s operations under new domestic shareholders, is expected to pave the way for a new direction for the company.
In a statement, Toshiba expressed its commitment to forging a new future with its new shareholders and emphasized the importance of continuous understanding and support from its stakeholders. The company’s shares ended their last trading day at 4,590 yen, with Chief Executive Taro Shimada expected to focus on high-margin digital services under the new ownership.
#DivaReports: After a $14 billion takeover by multiple investors, Toshiba was delisted on the Tokyo exchange after 74 years, placing it in the hands of domestic entities. pic.twitter.com/OvIDvU3VYm
— DIVA Magazine Pakistan (@divamagzinepak) December 26, 2023
The new management team will include executives from Japan Industrial Partners (JIP), Orix, Chubu Electric, and a senior adviser from Toshiba’s main lender, Sumitomo Mitsui Financial Group. This transition comes as Toshiba explores strategic partnerships, including a recent collaboration with Rohm to invest $2.7 billion in manufacturing facilities for power chips.
Looking ahead, industry experts highlight the need for Toshiba to divest from lower-margin businesses and strengthen its commercial strategies for advanced technologies. Damian Thong, head of Japan research at Macquarie Capital Securities, emphasized the potential of Toshiba’s assets and human talent in finding new opportunities for innovation and growth.
Ulrike Schaede, a professor of Japanese business at the University of California, San Diego, underscored the importance of allowing Toshiba’s engineers to engage in breakthrough innovation activities, positioning the company as a key player in the industry.
