Japan tech giant Toshiba studying going private as an option

Jun 3, 2022, 1:54 AM | Updated: 1:57 am

TOKYO (AP) — Toshiba executives said Friday that privatization remains an option for the Japanese technology company, as they defended their efforts to choose the right bidder to restore what they called “a strong Toshiba.”

Tokyo-based Toshiba has been trying to win over shareholders to a restructuring plan. The company has not given the nationalities or other details of the potential investor partners, including eight that have recommended that Toshiba Corp. go private.

Toshiba’s chairperson, Jerry Black, stressed in an online news conference that how bidders’ proposals are evaluated will be transparent to all stakeholders.

The goal is for Toshiba to go through what he called a “radical transformation” quickly, showing a clear direction and leadership, Black told reporters.

In March, investors rejected a company-backed reform proposal to split Toshiba into two businesses.

Some shareholders, including foreign investment funds and U.S.-based proxy advisory firm Institutional Shareholders Services, opposed the plan. An earlier plan that also was scrapped had called for a three-way split.

Black, who has experience in international consulting and turning around troubled Japanese companies, and Taro Shimada, a former executive at Siemens, have been trying to come up with another plan.

“It’s important that we focus our assets to move forward. Many people are saying Toshiba has weakened,” said Shimada, who took over as chief executive three months ago.

The options will be narrowed down after a June 28 general shareholders’ meeting, according to Toshiba. The company is seeking shareholders’ approval at that meeting for nominations of some outside directors to the board. The selected investment partners will be asked to submit legally binding proposals in July.

Japan Investment Corp., owned partly by the Japanese government, and U.S. investment fund Bain Capital are reportedly among those trying to acquire Toshiba.

Black said Toshiba was working closely with the Japanese government in evaluating its options.

It remains unclear if a suitor needs a Japanese partner to be able to close the deal.

“Japan and the world will need a strong Toshiba,” Black told reporters.

Toshiba has been struggling since the Fukushima nuclear disaster in March 2011. A tsunami sent three reactors into meltdowns, spewing radiation over an area that’s still partly a no-go zone. The company is involved in the decommissioning effort, which will take decades.

Its reputation also was tarnished by an accounting scandal, which involved books being doctored for years.

Toshiba has recently promised to boost its value by focusing on digital businesses, data services and infrastructure, such as light-detection technology, flexible materials, batteries and next-generation nuclear reactors.

Former chief executive Satoshi Tsunakawa, who had tried to lead Toshiba through reforms in recent years, is stepping down from the board.

Toshiba, founded about 150 years ago, had prided itself on its technological prowess for decades. It still has a sprawling business that includes computers, electronic devices and home appliances.

___

Yuri Kageyama is on Twitter https://twitter.com/yurikageyama

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

(Facebook Photo/Superior Court of Arizona in Yavapai County)...
Associated Press

Arizona judge has cases reassigned following DUI arrest

The Arizona Supreme Court has ruled that all cases currently assigned to a Yavapai County Superior Court judge recently arrested on suspicion of extreme DUI will be reassigned to other judges.
24 hours ago
Haitian migrant Gerson Solay, 28, carries his daughter, Bianca, as he and his family cross into Can...
Associated Press

US, Canada to end loophole that allows asylum-seekers to move between countries

President Joe Biden and Canadian Prime Minister Justin Trudeau on Friday announced a plan to close a loophole to an immigration agreement.
4 days ago
Expert skateboarder Di'Orr Greenwood, an artist born and raised in the Navajo Nation in Arizona and...
Associated Press

Indigenous skateboard art featured on new stamps unveiled at Phoenix skate park

The Postal Service unveiled the “Art of the Skateboard" stamps at a Phoenix skate park, featuring designs from Indigenous artists.
4 days ago
(Facebook Photo/City of San Luis, Arizona)...
Associated Press

San Luis authorities receive complaints about 911 calls going across border

Authorities in San Luis say they are receiving more complaints about 911 calls mistakenly going across the border.
10 days ago
(Pexels Photo)...
Associated Press

Daylight saving time begins in most of US this weekend

No time change is observed in Hawaii, most of Arizona, Puerto Rico, the U.S. Virgin Islands, American Samoa, Guam and the Northern Marianas.
18 days ago
Mexican army soldiers prepare a search mission for four U.S. citizens kidnapped by gunmen in Matamo...
Associated Press

How the 4 abducted Americans in Mexico were located

The anonymous tip that led Mexican authorities to a remote shack where four abducted Americans were held described armed men and blindfolds.
18 days ago

Sponsored Articles

(Desert Institute for Spine Care in Arizona Photo)...
Desert Institute for Spine Care in Arizona

5 common causes for chronic neck pain

Neck pain can debilitate one’s daily routine, yet 80% of people experience it in their lives and 20%-50% deal with it annually.
...
Quantum Fiber

How high-speed fiber internet edges out cable for everyday use

In a world where technology drives so much of our daily lives, a lack of high-speed internet can be a major issue.
...
Quantum Fiber

Stream 4K and more with powerful, high-speed fiber internet

Picking which streaming services to subscribe to are difficult choices, and there is no room for internet that cannot handle increased demands.
Japan tech giant Toshiba studying going private as an option