Toshiba gives shareholder management masterclass

Toshiba

09/06/2023 05:18

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are her own.)
    By Una Galani
       MUMBAI, June 9 (Reuters Breakingviews) - The Japanese
company is recommending a $14 bln buyout two-and-a-half months
after first supporting it. The deft way its board eventually
handled the process provides a template for Japan Inc to engage
pushy owners. Point one: don’t automatically treat shareholders
as the enemy.
    Full view will be published shortly.
    Follow @ugalani on Twitter
    
    CONTEXT NEWS
    Toshiba said on June 8 that its board has decided to
recommend shareholders accept a tender offer from a group led by
Japan Industrial Partners. It paves the way for a 2 trillion yen
($14.3 billion) buyout to take the conglomerate private. The
tender offer is expected to be launched some time from late
July. 
    The board in late March gave its tentative support to the
offer. It said the premium was reasonable compared to other
take-privates by third parties, but added the offer did not
reach a level that could be clearly recommended. Among other
factors, it cited limited visibility into the value of chipmaker
Kioxia, of which Toshiba owns around 40%. 
    In recommending the offer, Toshiba noted the book value of
Kioxia’s shares had fallen since its March announcement. 


 (Editing by Antony Currie and Katrina Hamlin)
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