ALBAWABA - Toshiba was delisted from the Tokyo Stock Exchange on Wednesday, after 74 years of being listed, following a period of turmoil and scandals that brought down one of Japan's biggest brand names and led to an acquisition and an uncertain future.
Ownership of the company has shifted to the private sector, led by a group of investors headed by the private equity firm Japan Industrial Partners, which also includes financial services company Orix and utility Shobu Electric Power and chipmaker ROM.
The $14 billion acquisition has put Toshiba in the hands of local players after a long battle with activist investors from overseas that crippled the battery, chip, nuclear, and defense manufacturing company. In a statement, the company said it would now take a big step towards a new future with a new shareholder. Toshiba's shares closed on Tuesday, its last trading day, at 4,590 yen, down 0.1% from the previous day.
Although it is not clear what shape Toshiba will ultimately take under its new owners, it is expected that CEO Nobuaki Kurumatani, who will remain in his position after the acquisition, will focus on high-profit margin digital services.
Some industry insiders suggest that a split of Toshiba might be a better option.
Damian Thong, head of Japan research at Macquarie Capital Securities, said, "The difficulties faced by Toshiba were ultimately the result of a mix of poor strategic decisions and bad luck." The company employs around 106,000 people and some of its operations are considered critical for national security.
Toshiba has already begun to move forward, partnering with ROM to invest $2.7 billion in manufacturing facilities for joint production of electronic chips.
Ulrike Schaede, professor of Japanese business at the University of California, San Diego, said the company needs to divest from low-profit margin businesses and develop stronger business strategies for some of its advanced technologies.
