Japan's established conglomerate Toshiba (TOSHIBA) will be delisted on December 20。

Shareholders approved a $14 billion offer by private equity firm Japan Industrial Partners (JIP) to buy its company at a shareholder meeting on Nov. 22, local time, paving the way for the troubled industrial conglomerate to go private.。

In Toshiba's view, complex relationships with various stakeholders, including dissenting shareholders, have hampered the company's business operations, and a stable shareholder base will help implement a long-term strategy centered on high-margin digital services.。

"Under a stable shareholder structure, the company's reforms will be technology-centric," said Taro Shimada, Toshiba's president and CEO.。

From electronics to power stations, the veteran industrial conglomerate is 148 years old。Previously, numerous overseas activist investors had clashed with the company's management on strategic issues, but now the deal has freed the two sides from mutual restraint and returned Toshiba to the bosom of the motherland。

JIP led a consortium of more than 20 companies to bid for Toshiba 78 after negotiating with about 20 potential investment partners..65% of the shares。The acquisition will end Toshiba's 74-year history of going public and will lead Toshiba to a renaissance under the consortium.。

After delisting, Toshiba shares are expected to be re-listed on the Tokyo Stock Exchange Prime Market and Nagoya Stock Exchange Premier Market and will no longer be traded on the two main board markets.。

Earlier it was reported that companies such as ROHM and SUZUKI are interested in joining the JIP bid.。

ROHM will contribute 300 billion yen (100 billion yen in equity and 200 billion yen in debt) to the company, which is known for producing cutting-edge silicon carbide power semiconductor devices for electric vehicles, which could create synergies with Toshiba's close ties to the automotive industry.。While successful cooperation will require joint efforts between Roma and Toshiba in technology development and raw material mining, the ability to share key technologies is one of the potential issues.。

On the other hand, Suzuki, which has contributed tens of billions of yen, will seek a stable supply of car batteries from Toshiba. It remains to be seen whether the two sides will cooperate in the technology and production investment needed to reduce battery costs.。Chubu Electric Power (Chubu Electric Power) will also contribute 100 billion yen to explore new business opportunities, drawing on Toshiba's expertise in nuclear power plant maintenance and abandonment, as well as technology applications for power production and transmission.。

According to foreign media reports, JIP has sought about 1 from 5 major Japanese banks..4 trillion yen in financing, including the 200 trillion yen commitment to Toshiba for operations。Among them, Sumitomo Mitsui Bank (SMBC) provided 515 billion yen and Mizuho Bank (Mizuho Bank) provided 460 billion yen.。

In response, Toshiba will be responsible for repaying the loan to finance the acquisition, and the key to timely repayment is higher profits for its company。The company may resort to layoffs and divestitures in order to turn a profit.。

It will be Japan's biggest M & A deal this year。As of now, Japan is the only major market in Asia to see an increase in M & A deals this year, according to London Stock Exchange Group。One of Toshiba's many challenges ahead is how to balance debt repayment with new business investments。

In recent years, Toshiba has divested many of its major businesses, including medical devices and memory chips, and retained smaller businesses (railways, power equipment, etc.)。Over the past eight years, the group's overall sales have fallen by about half.。

Statistics show that Toshiba Group's operating margin in fiscal 2022 was only 3 percent, down from 7 percent for rival Hitachi (Hitachi) and 10 percent for Sony Group (Sony Group), while memory chip maker Kioxia (Kioxia), of which Toshiba holds about 40 percent, is also in trouble.。

Since 2015, Toshiba has been hit by accounting scandals, suffered heavy losses, almost delisted, and has been involved in a series of corporate governance scandals.。And to restore investor trust, Toshiba must prove its good prospects to the public with action.。