Troubled Toshiba Announces Buyout Offer Led By Japan Businesses

Toshiba announced a 2 trillion yen ($14 billion) tender offer on Monday in a move that would take it private, as the scandal-tarnished Japanese electronics and energy giant seeks to turn itself around. From a report: The tender offer led by a buyout fund of major Japanese banks and companies called Japan Industrial Partners starts Tuesday and is priced at 4,620 yen ($32) a share. Chairperson Akihiro Watanabe asked shareholders to back the proposal, saying it is the only option for Toshiba to return to its former strength.

[...] Tokyo-based Toshiba also reported a 25 billion yen ($176 million) loss for the April-June quarter on 704 billion yen ($5 billion) in sales, down nearly 5% from the previous year. It did not give a full fiscal year profit projection, citing uncertainties in its computer chip business. If the proposal succeeds, it will be a major step in Toshiba's yearslong turnaround effort, allowing it to delist from the Tokyo Stock Exchange.

Breakup Time

[Registered Coward v2]

While most probably think of laptops and hard drives when tehy hear Toshiba, they are a huge conglomerate that is in everything from chips to industrial products to nuclear power plants. I'm guessing step to is breaking it up into component parts to get rid of the business that are a drag on the company.

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[nevermindme]

Toshiba fell quickly into the same old rut that General Electric fell into over the past 25 years. Selling the power and heavy industry quickly to people who do not care about ESG scores. Leave a single core competency as the onld business and take the divisions that have been starved of sunlight and shove them out into the open market where they can be watered by the potential of growth.

To many business units, chasing finance and medical arms, acquisitions to buy customer lists and just slow d

Re:Breakup Time

[Registered Coward v2]

I think GE’s downfall started earlier with “Neutron” Jack Welsh’s push to drive GE’s growth through financial services and the stuff they built was simply fodder to finance. By the time people realized financing was not the future it was too late.

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[UnknowingFool]

I think that many problems arose when companies tried to emulate General Electric. The thinking that it was GE processes that led to their success when it was really mostly financing. Also many companies using stacked ranking indefinitely found out why it should only be used temporarily to reduce employees; it erodes good workers more than the bad ones.

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[Iamthecheese]

An ESG score has a heavy "woke" component. It's not just demanding a company be environmentally responsible, it's demanding they submit to "green" policies that don't make sens in context, and they push woke on their employees. Wonder why once a year large companies make employees fill out surveys stating how they identify? Why they push rainbows and women this and women that for a few months? Why they push "diversity" and "celebrate (group) history"? It's the ESG score. A metric used by the wealthy to try

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[groobly]

Why? Oh, ok, I'll tell you. It's the same reason the wealthy sent missionaries to civilize the heathen in the 16th-17th centuries.

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[UncleTogie]

Define "woke", Spanky...

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[Iamthecheese]

>Define "woke"

Certain ideologies are focused on bringing about improvements in the standards of living of those who have least and suffer the most by blaming those who have the most and suffer the least. These ideologies simplify the process by first grouping those "advantaged" or "disadvantaged"(1), then identifying related traits such as skin color and sex more common in one group or the other(2), then assigning blame to people with the attributes common in the "advantaged". Since this is slightly mor

Re:Breakup Time

[thegarbz]

chips to industrial products to nuclear power plants

Nope. They sold the nuclear power business in 2018. After buying Westinghouse for $5.4 billion they sold it 13 years later for $4.6bn. It was just another silly investment decision by them which cost them dearly. Though, not as bad as some tech investments companies have made over the years.

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[williamyf]

chips to industrial products to nuclear power plants

Nope. They sold the nuclear power business in 2018. After buying Westinghouse for $5.4 billion they sold it 13 years later for $4.6bn. It was just another silly investment decision by them which cost them dearly. Though, not as bad as some tech investments companies have made over the years.

Is even worse, as the "Westinghouse" Toshiba sold was what was left of westinghouse itself + Toshiba's nuclear energy assets.

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[Registered Coward v2]

chips to industrial products to nuclear power plants

Nope. They sold the nuclear power business in 2018. After buying Westinghouse for $5.4 billion they sold it 13 years later for $4.6bn. It was just another silly investment decision by them which cost them dearly. Though, not as bad as some tech investments companies have made over the years.

My mistake. They still list the ABWR on their home page but it goes to their turbine business.

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[Dadoo]

If the rest of their equipment is a poor quality as their computer stuff, I'm not surprised they're having problems.

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[John.Banister]

I've always liked their 20+ kw industrial electric motors. Their variable frequency drives aren't the most robust ever built, but the prices for the small ones have often been good.

JIP own other consumer things

[williamyf]

Like the VAIO desktop/laptop bussiness from Sony, and the cameras from Olympus. It would be interesting (and has synergies) if they did some sort restructuring of the consumer parts, such as:

VAIO Laptops for the high end and Tosh laptops for the Low end with Toshiba HDDs and Kioxia SSDs inside. (increased economies of scale and purcharsing influence).

Olympus cameras (the Tough line is highly regarded among scuba divers like myself) with Kioxia Flash inside...

On vera. Veremos. We will see

Is Kioxia included?

[williamyf]

Toshiva had a joint venture with sandisk for NAND Flash production. The FABs are owned half and half, investments are made half and half, and wafer output is split half and half. Sandisk was bought by WD, (and they kept their 50%). Meanwhile, tosh sold a part of their 50% and the about 30% they kept was renamed as "Kioxia".

I wander if Kioxia is part of the deal, and what are the plans of JIP for it, as it is a very important source of competition in the NAND Flash market...