(Tokyo) Toshiba on Monday announced a US$14 billion takeover bid to shut down its capital as the scandal-ridden Japanese electronics and energy giant seeks recovery.
The public offering led by a buyout fund for major Japanese banks and corporations called Japan Industrial Partners begins Tuesday and is set at US$32 per share.
Chairman of the board, Akihiro Watanabe, asked shareholders to support the proposal, saying it is the only option for Toshiba to regain its former strength.
“This decision by Toshiba is great not only for Japan, but also for the whole world,” he said. I have faith in the rebirth of Toshiba. »
Toshiba, headquartered in Tokyo, also announced a loss of US$176 million for the April-June quarter on revenue of US$5 billion, down nearly 5% from the year. former.
The company did not give a profit forecast for the full fiscal year, citing uncertainties surrounding its microchip business.
If the proposal is successful, it will be a major step in Toshiba’s years-long turnaround effort that will allow it to delist from the Tokyo Stock Exchange.
For the offer to succeed, at least two-thirds of the shareholders must offer their participation. Foreign activist investors hold a large stake in Toshiba and some have expressed dissatisfaction with the bid.
Toshiba’s board of directors accepted the transaction in March.
Toshiba stock closed at US$32 on Monday.
The takeover would keep Toshiba in an alliance with Japanese partners. Japan Industrial Partners, established in 2002 to restructure Japanese companies, has also invested in other Japanese brands such as Sony, Hitachi and Olympus.
Toshiba, a leading manufacturer in Japan’s nuclear industry, was hit by the March 2011 tsunami that caused three reactors to melt down in Fukushima, northeastern Japan.
Toshiba is participating in the effort to dismantle Fukushima Dai-ichi, which is expected to take decades. Its US nuclear subsidiary Westinghouse filed for bankruptcy in 2017 after years of steep losses due to skyrocketing security costs.
The Toshiba brand, once prized for its home appliances, laptops, batteries and computer chips, has become the target of foreign shareholder activists.
His image was also badly tarnished by a sprawling accounting scandal in 2015 involving books that had been doctored for years.
Toshiba stressed that the latest offer was “fair and reasonable” and consistent with management logic, with companies that have long had deep business relationships with Toshiba offering to invest.
Chief executive Taro Shimada said the offer would bring stability to Toshiba, which he noted will celebrate its 150th anniversary in a few years.
He called on stakeholders to support the offer.
“The value of our business comes from creating what didn’t exist before in the world,” he told reporters.