Japanese multinational conglomerate corporation Toshiba has accepted a takeover bid by a group of companies led by Japan Industrial Partners (JIP) for about 2 trillion yen ($15.3 billion), according to a Bloomberg report. It added that a resolution in this regard has been passed at the company’s board meeting.
It is the third-largest transaction globally so far this year, according to Refinitiv data. With this, the iconic conglomerate Toshiba moved a step closer to ending a troubled chapter in its more-than-140-year history.
The offer is at about a 9.6 per cent premium to Toshiba’s closing price on Thursday. Toshiba’s businesses span nuclear power, defence technology and which owns 40 per cent of memory chip maker Kioxia Holdings.
Since 2015, Toshiba has been battered by accounting and corporate governance scandals, heavy losses as well as friction with activist investors that led to a strategic review.
The JIP consortium last month submitted a binding buyout proposal backed by $10.6 billion in loan commitments from major banks.
It has taken weeks for the board to proceed with a vote on JIP’s proposal as some board members were dissatisfied with its offer price, according to a Reuters report quoting sources.
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