Toshiba’s board announced on Thursday that they had accepted a buyout offer of $15.2 billion from a group of investors led by private equity firm Japan Industrial Partners. The buyout is expected to close in the second half of 2023.
If the transaction goes as planned, the turbulent public scandal might soon be over for this industrial conglomerate, as it would shift to becoming privately owned and managed by those based domestically. There has been considerable pressure from foreign shareholders on this matter.
Read more: Japan’s Toshiba Mulls Going After Proposal Public
Some 20 Japanese companies including financial services firm Orix Corp, chipmaker Rohm and Chubu Electric Power plan to take part in the deal, sources have said. It would be the third-largest M&A transaction globally so far this year, according to Refinitiv data.
“This ends months of uncertainty regarding whether a deal was coming and years of uncertainty regarding Board understanding of the right price,” said analyst Travis Lundy of Quiddity Advisors, who publishes on Smartkarma.
“This would provide a lot of activists a way out, even if it is not what they hoped for. The question is whether ‘Toshiba Fatigue’ is strong enough to overcome disappointment on price.”
Featured News
Judge Mehta Questions Both Sides in Landmark Google Antitrust Case
May 2, 2024 by
CPI
FCC Urges Urgent Funding for Removal of Chinese Telecom Equipment from U.S. Networks
May 2, 2024 by
CPI
Former Pioneer CEO Facing Potential Criminal Charges For Colluding With OPEC
May 2, 2024 by
CPI
South Korea’s Antitrust Regulator Greenlights K-Pop Powerhouse Deal
May 2, 2024 by
CPI
Exxon’s Pioneer Purchase Approved, Former CEO Barred from Board
May 2, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI