Toshiba Okays $14-B JIP Takeover Bid

Toshiba has announced that a $14 billion tender offer from the private equity firm Japan Industrial Partners (JIP) had ended successfully - a deal that paves the way for the embattled industrial conglomerate to go private, as reported by Makiko Yamazaki for Reuters.

In March, Toshiba accepted the buyout offer valuing the industrial conglomerate at 2 trillion yen ($13.5 billion). I Photo: Toshiba

The JIP-led consortium saw 78.65% of Toshiba shares tendered, granting the group a majority of more than two-thirds, which would be sufficient to force out remaining shareholders.

This deal places the 148-year-old electronics-to-power stations maker in domestic hands after years of battles with overseas activist investors. Toshiba is set to be delisted as early as December.

"Activist shareholders and Toshiba were entangled with each other for years. This takeover allows both sides to break free from their mutual grip," said analyst Travis Lundy of Quiddity Advisors, who publishes on Smartkarma.

In March, Toshiba accepted the buyout offer valuing the industrial conglomerate at 2 trillion yen ($13.5 billion). Although some shareholders were dissatisfied with the price, Toshiba argued that there was no prospect of a higher offer or competing bid.

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