ALBAWABA - Toshiba has closed a deal to sell 78.65% of its shares for $14 billion. The Japanese company received the offer from Japan Industrial Partners, a private equity firm, paving the way for its transformation into a private company and the delisting of its shares after a 74-year journey as a publicly traded entity.
The deal hands the Japanese company over to local investors following years of battles with active foreign investors. Japan Industrial Partners is composed of 20 Japanese companies, and this transaction is expected to be the largest merger and acquisition deal in Japan this year.
The company is set to be delisted from the stock exchange at the beginning of December.
Last March, Toshiba had accepted the purchase offer valuing it at 2 trillion yen ($13.5 billion). While some shareholders disagreed with the price, Toshiba clarified that there were no prospects of receiving a higher offer.
The company, which is nearly 150 years old, highlighted that its complex relationships with investors, including those with different viewpoints, had hindered its operations. It added that a stable shareholder base would help it continue its long-term strategy.
Since 2015, Toshiba has been grappling with accounting scandals and sharp losses, and it came close to being delisted from the stock exchange.
