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Toshiba shareholders approve delisting and JIP takeover

EditorAmbhini Aishwarya
Published 11/22/2023, 12:52 AM
Updated 11/22/2023, 12:52 AM
© Reuters.

TOKYO - In a landmark decision, Toshiba (OTC:TOSYY) Corp.'s shareholders have approved the company's delisting from the Tokyo and Nagoya Stock Exchanges, set for December 20, marking an end to its presence on the public market since its inception in 1875. The extraordinary meeting held today ratified a share consolidation strategy that will see the firm transition into private ownership under Japan Industrial Partners Inc. (JIP). This move finalizes JIP's successful tender offer, with a significant investment of 2 trillion yen, which garnered a subscription rate exceeding 78%.

The strategic shift comes as Toshiba aims to refocus on high-growth areas such as social infrastructure and quantum technology. President Taro Shimada is keen to reignite the company's pioneering technological spirit within a stable shareholder environment post-takeover. Shareholders unanimously agreed to the acquisition of all outstanding shares, paving the way for JIP to secure a commanding stake in Toshiba.

The consolidation will convert 93 million shares into one unit, effectively reducing the influence of non-consortium shareholders as JIP moves toward full ownership. Despite the nostalgic undertones expressed by long-term shareholders like Hiroshi Sukegawa, there is an air of optimism about Toshiba's future growth potential and technological expertise.

The endorsement of this bold strategy by Toshiba's shareholders comes after years of management challenges, including a financial fraud incident in 2015 and subsequent turmoil. The company now faces the task of driving group growth while managing a significant financial burden estimated at 8 trillion yen (USD1 = JPY148.77) due to the delisting process.

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