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Toshiba is about to sell itself for more than 15 billion USD

Avatar of Nick John By Nick John Dec25,2023 #billion #Toshiba
Toshiba is about to sell itself for more than 15 billion USD 2
Toshiba is about to sell itself for more than 15 billion USD 2

According to today’s statement (March 23), Toshiba’s Board of Directors said it had approved the above proposal from a group of businesses led by Japan Industrial Partners (JIP).

Proposal of 2,000 billion yen (15.3 billion USD) corresponds to 4,620 yen per share of the Japanese technology monument.

Toshiba headquarters in Japan.

The move could end years of turmoil at Toshiba, with a series of scandals that have left the company in trouble leading to the decision to sell itself.

According to Toshiba, before demand for memory chips and hard drives went down, the above group of businesses offered to buy at 5,500 yen per share.

Bloomberg commented that if the deal is successful, this will be one of the largest transactions in Asia this year in the context of a declining M&A market.

Analyst Mio Kato at LightStream Research said this would be a positive thing because one of the problems with Toshiba is the lack of a consistent strategy.

Toshiba has continuously encountered many crises over the past 8 years, starting with the accounting scandal in 2015. This caused a profit deficit and the company had to undergo comprehensive restructuring.

By early 2017, Toshiba continuously missed deadlines for publishing financial reports due to troubles in the nuclear power segment in the US.

Investing in nuclear energy in the US caused Toshiba to lose 6.3 billion USD and was on the verge of being delisted.

Early last year, shareholders did not accept the company’s board of directors’ proposal to split Toshiba.

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