- In 2015, the company grappled with a significant accounting scandal
- Toshiba has also faced the considerable and costly task of decommissioning a nuclear power plant
Soon, Toshiba to become a private entity. A Japanese consortium has taken majority ownership of Toshiba following their successful tender offer of 2 trillion yen (£11 billion).
The consortium’s share has already exceeded the minimum reach by 78.65%, which shows the shift in Toshiba’s parentage to TBJH Inc., which is a particular purpose company established by Japan Industrial Partners (JIP) to acquire the Toshiba shares through the tender offer.
Toshiba’s CEO, Taro Shimada, said, “Toshiba Group will now take a major step toward a new future with a new shareholder.”
He emphasised that even after privatisation, the company intends to prioritise ethical conduct to enhance its value. In 2015, the company grappled with a significant accounting scandal involving the manipulation of financial records over an extended period. This issue was compounded by challenges within Toshiba’s nuclear energy division.
Not only that, Toshiba has also faced the considerable and costly task of decommissioning a nuclear power plant in Fukushima, northern Japan. The plant was severely impacted by a tsunami in 2011, resulting in three meltdowns. The decommissioning process at the Fukushima Dai-ichi nuclear plant is anticipated to span several decades.
In addition, the company’s US nuclear subsidiary, Westinghouse, declared bankruptcy in 2017 due to prolonged financial losses primarily due to escalating safety expenses. Initially, Toshiba planned to make a new power station in Cumbria until 2018. In a strategic move in 2021, the company announced its decision to restructure, opting to split into three distinct business entities.
Toshiba’s journey through the pivotal transition to private ownership and its foray into cutting-edge technologies is being scrutinized by the industry and stakeholders. This convergence of financial restructuring and technological advancements is poised to define Toshiba’s future path, generating curiosity and high expectations in the business world and beyond.