End of era as Toshiba delists from Tokyo stock exchange after 74 years

Toshiba Delists From Tokyo Stock Exchange After 74 Year

Toshiba, a Japanese electronics giant synonymous with the country’s 20th-century dominance in the industry, has officially delisted from the Tokyo stock exchange after 74 years. The move follows a £11 billion deal, led by a consortium of investors, including private equity investor Japan Industrial Partners (JIP), Orix, Chubu Electric Power, and chipmaker Rohm.

Key Points

Private Equity Takeover:
- Toshiba was taken private in an £11 billion deal led by Japan Industrial Partners. The move marks the end of Toshiba’s 74-year presence on the Tokyo stock exchange.
Activist Investor Pressure:
- The delisting comes after years of pressure from activist investors, triggered by an enormous accounting scandal that raised questions about Japan’s corporate governance model.
Post-Takeover Revival Efforts:
- Under new ownership, Toshiba has already taken steps to revive itself, including a deal with investor Rohm to manufacture chips controlling power supply to electronics.
Potential Breakup:
- Analysts speculate that Toshiba may undergo a breakup to realize more value. The company’s restructuring and strategic moves will be closely watched in the coming period.
Historical Roots:
- Toshiba’s roots trace back to a factory set up in 1875, less than a decade after the end of Japan’s cultural and economic isolation. The company played a significant role in Japan’s post-war economic rise.
Recent Troubles:
- Toshiba faced troubles in recent years, including a major accounting scandal in 2015 and issues in its nuclear technology subsidiary. Share sales and divestment of certain business units followed.
Government Oversight:
- The Japanese government, considering Toshiba’s strategic importance and its large workforce of about 106,000, will closely monitor the company’s operations, especially those critical to national security.
New Board Composition:
- Four JIP executives, along with representatives from Orix and Chubu Electric, will join the new board. The addition of a senior adviser from Toshiba’s main lender, Sumitomo Mitsui Financial Group, is also part of the restructuring.
Toshiba’s Statement:
- Toshiba expressed gratitude to shareholders and stakeholders, stating that the delisting marks a major step toward a new future with new shareholders.

Toshiba’s delisting from the Tokyo stock exchange signifies a significant chapter in the company’s history. The move comes amid efforts to navigate challenges, restructure, and revive the business under new ownership. The outcome of Toshiba’s strategic decisions and potential restructuring will be closely monitored in the corporate landscape.