A consortium led by Japan Industrial Partners (JIP) has offered to purchase Toshiba, which the Japanese tech giant has accepted, leading to the company being taken private. The deal, which values Toshiba at 2 trillion Yen (approximately $15.3 billion) or 4,620 Yen ($35.43) per share, has been approved by Toshiba’s board and represents a 9.7% premium over Thursday’s closing price of 4,213 Yen.

Toshiba has a long and illustrious history dating back to the late 1800s and has established itself as a prominent global electronics corporation. However, since a significant accounting scandal rocked the company in 2015, it has encountered significant difficulties. To correct its course, the Japanese tech titan has taken various steps, including cutting almost 8,000 jobs, divesting several divisions, selling its image sensor division to Sony, selling its television business to Hisense, relinquishing its memory chip business, and officially exiting the PC market.

Reuters’ sources have revealed that approximately 20 Japanese companies, such as Chubu Electric Power and Rohm Co., a chipmaker, intend to participate in the buyout. If successfully completed, the deal would become the third largest merger or acquisition globally this year, according to Refinitiv.

Over the past year, Toshiba’s stock has declined by more than 11%, but as of writing, it has risen approximately 4.2% in response to the announcement.

During Toshiba’s year-long competitive auction process, the JIP bid was the sole complete proposal received. Sources indicate that in the first round, Toshiba received eight proposals and two capital alliance offers, but only four offers advanced to the second round.

According to Travis Lundy, an analyst at Quiddity Advisors, the deal brings an end to months of ambiguity regarding the possibility of a deal. Although the price may not be ideal, Lundy suggests that it provides a solution for activist investors.

We are informed that JIP is expected to launch a tender offer in late July.

Did you know that you can watch your favorite Premier league football matches today on your device without any cost and still support a previllage child? Make sure to click on the link below every time there is a live football game.

https://newsaffairng.com/live-football/