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

FILE - Gabby Petito's mother Nichole Schmidt, wipes a tear from her face during a news conference o...

Associated Press

Mother of man who killed Gabby Petito said in letter she would help son ‘dispose of a body’

The mother of the man who killed Gabby Petito told her son in an undated letter that she would “dispose of a body” if needed because she loved him so much, according to copies of the note shared publicly for the first time this week by attorneys for Petito's parents.

2 days ago

A member of the 3rd U.S. Infantry Regiment, also known as The Old Guard, places flags in front of e...

Associated Press

5 things to know about Memorial Day including its controversies

Memorial Day is supposed to be about mourning the nation’s fallen service members, but it’s come to anchor the unofficial start of summer and a long weekend of discounts on anything from mattresses to lawn mowers.

2 days ago

FILE - This artist sketch depicts the trial of Oath Keepers leader Stewart Rhodes, left, as he test...

Associated Press

Officers describe chaos, fear on Jan. 6 as judge weighs prison time for Oath Keepers’ Rhodes

Police officers who defended the U.S. Capitol on Jan. 6, 2021, and public servants who fled the mob's attack told a judge on Wednesday that they are still haunted by what they endured, as the judge prepares to hand down sentences in a landmark Capitol riot case.

3 days ago

Pride month merchandise is displayed at the front of a Target store in Hackensack, N.J., Wednesday,...

Associated Press

Target on the defensive after removing LGBTQ+-themed products

Target once distinguished itself as being boldly supportive of the LGBTQ+ community.

4 days ago

(Photo By Tom Williams/CQ Roll Call via Getty Images)...

Associated Press

Former Arizona television journalist announces bid for Schweikert’s US House seat

A former Phoenix television journalist announced her candidacy Wednesday for the congressional seat currently held by seven-term Republican Rep. David Schweikert.

4 days ago

Tortoise by Henry Davis earned an honorable mention in the "Adventures in Nature” student photo c...

Associated Press

When you adopt a desert tortoise, prepare for a surprisingly social and zippy pet

They’re not fluffy, they don’t play fetch and they certainly don’t roll over. But there is such a thing as a lap tortoise.

5 days ago

Sponsored Articles

...

OCD & Anxiety Treatment Center

How to identify the symptoms of 3 common anxiety disorders

Living with an anxiety disorder can be debilitating and cause significant stress for those who suffer from the condition.

(Photo by Michael Matthey/picture alliance via Getty Images)...

Cox Communications

Valley Boys & Girls Club uses esports to help kids make healthy choices

KTAR’s Community Spotlight focuses on the Boys & Girls Club of the Valley and the work to incorporate esports into children's lives.

...

Day & Night Air Conditioning, Heating and Plumbing

Company looking for oldest air conditioner and wants to reward homeowner with new one

Does your air conditioner make weird noises or a burning smell when it starts? If so, you may be due for an AC unit replacement.

Japan tech giant Toshiba studying going private as an option