Toshiba Corp. was delisted on Wednesday, bringing down the curtain on its 74-year history as a listed company following a 2 trillion yen ($14 billion) buyout from a consortium led by Japan Industrial Partners Inc.
Under the new owner, the major Japanese tech company will focus on turning around its business, which was undermined by a spate of problems in the 2010s, ranging from an accounting scandal to massive losses in its U.S. nuclear business.
"Toshiba Group will now take a major step toward a new future with a new shareholder," the company said in a statement on Tuesday, adding that it will "strive to further enhance its corporate value and contribute to society."
Under the new management structure scheduled to start on Friday, the majority of its board will consist of members of the consortium, including Chubu Electric Power Co. and Orix Corp., while President and CEO Taro Shimada will continue to serve in his current role.
The delisting allowed Toshiba to cut ties with overseas activist investors and the conglomerate is now expected to collaborate with about 20 domestic companies that form the consortium to seek growth.
As a first step, Toshiba said earlier this month it will collaborate with electric parts company Rohm Co., a member of the consortium, to manufacture power semiconductors used for electric vehicles and other products.
Toshiba has said it will also focus on growth areas such as social infrastructure and quantum technology.
On its last trading day on Tuesday, Toshiba shares closed 0.1 percent down from the previous day at 4,590 yen. Shareholders who did not tender their shares in JIP's offer and held onto them will be squeezed out and reimbursed, according to the company.
Toshiba, founded in 1875, grew to be one of the biggest companies in Japan, with its business ranging from PCs to nuclear technology. But its management got into a downward spiral after a series of scandals hit the company in the mid-2010s.
In 2017, Toshiba increased its capital through a third-party allotment of new shares totaling about 600 billion yen to eliminate its excess liabilities and stay listed, leading to activist shareholders investing in the company.
Amid increasing tension between the conglomerate and such investors, the Toshiba board agreed to accept a buyout offer from the JIP-led consortium in March this year.
Toshiba "expresses its sincere gratitude to its shareholders and other stakeholders for their understanding and wholehearted support to (its) management for many years since the company was listed," it said in a statement.
Related coverage:
Toshiba shareholders OK stock consolidation, set for December delisting
Toshiba to delist in Japan on Dec. 20 after 74 years of history
2 tril. yen Toshiba takeover bid succeeds, Japan investor group says
