Toshiba prepares to delist shares after 74 years on the stock exchange

On December 20, 2023, Toshiba Corporation, a famous Japanese electronics brand, will delist after 74 years of existence on the Tokyo Stock Exchange.

According to Reuters, the group is being acquired by a group of private investors, led by Japan Industrial Partners (JIP), financial services company Orix, utility company Chubu Electric Power, and chip maker Rohm.

Toshiba prepares to delist shares after 74 years of existence on the Japanese stock exchange (Photo TL)

The $14 billion acquisition of Toshiba has returned the group to Japanese investors after a long period of conflict with foreign investors. This is also believed to have affected chip production, nuclear equipment and defense.

It remains unclear how Toshiba will ultimately restructure under its new owners, but Taro Shimada remains CEO. The group is expected to focus on developing high-margin digital services.

"Toshiba's troubles stem from poor strategic decisions and bad luck," said Damian Thong, head of Japan research at Macquarie Capital Securities. "I hope that through this divestment, Toshiba's people will turn a new page and reach their full potential."

The Japanese government will closely monitor Toshiba's moves in the coming period. The group currently has about 106,000 employees, some of which are subsidiaries that play an important role in Japan's national security.

Ulrike Schaede, a professor of Japanese economics at the University of California, said Toshiba needs to get out of its low-margin business and develop more aggressive commercial strategies for some of its advanced technologies.

The group has been through a lot over the past eight years, from the 2011 tsunami that shut down the Fukushima Dai Ichi plant to the 2015 accounting scandal involving falsified profit figures.

The failed attempt to enter the US nuclear energy market also resulted in a loss of 6.3 billion USD. In the second quarter of 2023, Toshiba also had to announce a loss of 25 billion Yen while sales reached only 704 billion Yen, down 5% compared to the same period last year.

Source: https://www.congluan.vn/toshiba-chuan-bi-huy-niem-yet-co-phieu-sau-74-nam-ton-tai-tren-san-chung-khoan-nhat-ban-post277353.html