Toshiba to Be Sold to Japanese Private Equity Fund... Sale Price 20 Trillion Won

[Image source=Yonhap News]

Toshiba is being sold to Japan Industrial Partners (JIP), a consortium of major Japanese corporations. The sale price is approximately 2 trillion yen (about 19.6 trillion won).

According to Japan's Kyodo News and Nihon Keizai on the 23rd, Toshiba's board of directors decided to accept the acquisition proposal led by the JIP consortium. The board reportedly judged that the sale would increase corporate value and shareholder benefits.

JIP plans to conduct a public tender offer for Toshiba shares, delist the company, increase its corporate value, and then relist it. The acquisition funds will be covered by capital from 20 Japanese companies including ORIX and Chubu Electric Power, as well as up to 1.2 trillion yen (about 11.7 trillion won) borrowed from banks.

Toshiba, which is being sold to the consortium of major Japanese corporations, is a leading Japanese company engaged in power generation equipment, transportation systems, elevators, hard disk drives (HDD), and semiconductor memory businesses. However, it has faced severe management difficulties due to accounting fraud in 2015-2016 and the bankruptcy of its nuclear subsidiary, the US-based Westinghouse. Although foreign capital also participated in this acquisition battle, Toshiba decided to sell to the Japanese capital JIP.

Japan's NHK forecasted that "the financial burden from delisting and securing funds necessary for growth investment will be challenges."

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