Japan’s Toshiba is ending its run as a publicly traded company after 74 years, with the Tokyo Stock Exchange delisting its shares today. The once-famous company has struggled for the past decade with turmoil and financial scandals that have brought one of Japan’s best-known industrial brands to a crashing halt.
The private company
Toshiba is now a private company, which means, among other things, that the public can no longer buy its shares on the conventional stock markets. The new owners are investors from the private equity firm Japan Industrial Partners (JIP), which also includes financial services company Orix, utility Chubu Electric Power and chipmaker Rohm.
Toshiba makes batteries and chips, as well as nuclear and defence equipment. The new owners bought the conglomerate for $14 billion and the business now has Japanese owners again. The change was preceded by a protracted battle with foreign investors that paralysed the company.
New expectations
Toshiba said it “will now take a significant step towards a new future with a new shareholder”. It added that it would appreciate continued understanding and support from all stakeholders.
Toshiba shares were last traded on Tuesday. They closed down 0.1 percent to 4,590 yen on the Tokyo Stock Exchange that day.
Although it is unclear what form Toshiba will ultimately take under its new owners, CEO Taru Shimada is expected to focus on high-margin digital services. Shimada will remain as CEO after the current changes. The support he has received from the JIP has derailed an earlier plan for the company to merge with a state-backed fund. Some experts say that splitting Toshiba may have been a better option.
Source Czech Press Office
