Legendary Toshiba: 74-Year Stock Market Era Ends

On September 21st, Toshiba Corporation officially announced its decision to delist from the Tokyo Stock Exchange, thereby concluding its extensive 74-year history as a publicly traded entity. This significant development represents the successful culmination of an acquisition offer that was initially set in motion in March.

The acquisition proposal, valued at $15 billion, was spearheaded by the private equity firm "Japan Industrial Partners" (JIP). Remarkably, it garnered substantial participation from more than half of Toshiba's shareholders, surpassing the requisite threshold for privatization. Currently, JIP holds a substantial stake of 78.65% in the company.

Prior to this, there was notable involvement from the prominent semiconductor manufacturer ROHM, pledging a total sum of ¥300 billion (equivalent to approximately $2.16 billion). This contribution was made as part of their collaboration within the consortium led by JIP, which was established with the purpose of executing the proposed acquisition of Toshiba.

The decision to delist from the Tokyo Stock Exchange marks the conclusion of a challenging decade for Toshiba, characterized by a series of scandals and substantial financial losses. While Toshiba was once renowned for its technological innovations, it faced a significant setback in 2015 when it paid the largest fine in Japan's history for fraudulent financial reporting.

Subsequently, the company encountered significant setbacks in its venture into the nuclear energy sector, necessitating a write-down of $6.3 billion and the divestiture of its prized storage chip business. This divestiture resulted in the restructuring of the business entity, now known as Kioxia Holdings, with Toshiba retaining a substantial ownership interest.

Furthermore, Toshiba's subsidiary in the United States, Westinghouse Electric, filed for bankruptcy in 2017 due to years of severe financial losses, primarily attributed to escalating safety-related expenses.