Toshiba indicates a willingness to go private
Toshiba Corp. said on Wednesday it supports a buyout offer led by domestic private equity firm Japan Industrial Partners Inc., boosting the long-discussed takeover’s likelihood of going through.
The Tokyo-based firm recommended that shareholders tender their shares in the offer. The buyout price is at the low end of estimates from outside experts based on financial projections, Toshiba said, but executives added that the company’s business outlook remains shaky.
The prospects for flash memory chipmaker Kioxia Holdings Corp. remain “very severe,” despite promising demand for power semiconductors, Chief Executive Officer Taro Shimada said at a news conference Thursday. Shimada had previously said the company might not be able to meet projected targets for the next two years if the company’s “management base remains unstable.”
Toshiba Corp (6502.T) said on Thursday its board has decided to recommend shareholders take up a tender offer from a group led by Japan Industrial Partners, helping pave the way for a $14 billion buyout to take the Japanese conglomerate private.