Toshiba was delisted from the Tokyo Stock Exchange 74 years after its listing. A new page is turning for the company, which represented, alongside Sony and Panasonic, all of Japanese technological know-how.
Toshiba dates back to a factory established in 1875. Its successor, Shibaura Engineering Works, merged with the Tokyo Electric Company in 1939. After surviving World War II, the company’s success soared along with it. than the Japanese economy. It was renamed Toshiba in 1978. Energy, transport, elevators, hard drives, semiconductors, IT… It has distinguished itself in many industries.
A privatization that could be beneficial to Toshiba
The decline was brutal. Faced with numerous headwinds, Toshiba has been on sale since 2021. It has just been privatized by the Japanese consortium Japan Industrial Partners (JIP) this Wednesday, as part of a $14 billion deal.
Taro Shimada, Toshiba’s chief executive, is expected to remain in his post. It will focus on digital services to increase its profitability. Experts agree that the decision to delist the company from the stock exchange could benefit it. Moreover, the first measures to try to relaunch under the new management have been initiated, in particular the conclusion of an agreement with the investor Rohm. This aims to manufacture chips to control the power supply of electronic devices.
“ Toshiba’s struggles were ultimately caused by a combination of poor strategic decisions and bad luck “, commented Damien Tong, head of research in Japan at Macquarie Capital, in an interview with Reuters. “ We hope that the sale will allow Toshiba to find a home for its assets and talents, so that they can reach their full potential “, he continued.
Years of difficulty
The move follows years of pressure from foreign investors on the company, after a huge accounting scandal rocked it. In 2015, Toshiba opened an investigation into what turned out to be an overestimation of its profits, followed by major problems at its nuclear technology subsidiary. Already in difficulty in 2020, it announced that it would end its activity in the PC sector.
Toshiba employs around 106,000 people, while some of its activities are considered essential for national security. The Japanese government should, logically, closely monitor this new chapter in its adventure. According to some analysts, dismantling cannot be ruled out, as this would increase its value.
Sources: Reuters, ZDNet
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