Toshiba has confirmed that it will launch a two-trillion-yen ($14 billion) tender offer to take the company private in a bid to enhance profitability. Toshiba’s board and private equity firm Japan Industrial Partners (JIP) agreed to raise the share price by 10 yen ($0.07) to the final offer of 4,620 yen ($32.27) per common share.
For the tender offer to succeed, at least two-thirds of Toshiba’s shareholders must agree to tender their shares. The offer values Toshiba at 1.99 trillion yen ($13.97 billion).
This move comes as Toshiba seeks to reverse its recent financial challenges, including the collapse and bankruptcy of its US nuclear power unit following the Fukushima disaster and concerns about accounting and governance.
Additionally, the outcome may be influenced by potential merger deals between Kioxia and Western Digital, in which Toshiba owns a 40% stake. The tender offer is open until September 20, 2023.
