Toshiba Corp's (6502.T) board on Tuesday recommended shareholders approve a $14 billion buyout offer from a consortium led by Bain Capital, in a move that would end the troubled conglomerate's years of turmoil.
The deal, which values Toshiba at ¥2.2 trillion ($18.4 billion), is the highest offer received by Toshiba since it put itself up for sale last year. It would see the company delisted from the Tokyo Stock Exchange.
Toshiba's board said the deal was the best option for shareholders, as it would provide them with a significant premium to the stock's current price and allow them to exit their investment without having to worry about the company's future.
The buyout offer has been met with mixed reactions from Toshiba's stakeholders. Some have welcomed the deal, saying it will provide Toshiba with the stability and clarity it needs to move forward. Others have criticized the deal, saying it undervalues Toshiba and gives too much power to Bain Capital.
Toshiba shareholders will vote on the buyout offer at a meeting on March 29. If the deal is approved, it is expected to close in the second half of 2023.
The buyout of Toshiba is the latest in a series of major corporate deals in Japan. In recent years, there have been buyouts of Sony Corp's Vaio PC business, Hitachi Ltd's semiconductor unit, and Panasonic Corp's home appliances business.
The trend is being driven by a number of factors, including the aging of Japan's population, which is leading to a decline in demand for consumer electronics and other products. Japanese companies are also facing increasing competition from overseas rivals, which is forcing them to consolidate in order to survive.
The buyout of Toshiba is a major event for the Japanese business world. It will be interesting to see how it plays out and what impact it has on other Japanese companies.