Tokyo Stock Exchange delists Toshiba amid ownership change
Dec. 20 (UPI) -- Japanese technology company Toshiba was delisted from the Tokyo Stock Exchange on Wednesday.
The move ends the company's 74-year run on the exchange after the company was bought out by a consortium of Japanese businesses that now aims to turn the business around following an accounting scandal and missteps in the U.S. nuclear sector.
"Toshiba Group will now take a major step toward a new future with a new shareholder," the company said on Tuesday. "[It will] strive to further enhance its corporate value and contribute to society."
The consortium, led by Japan Industries Partners Inc., purchased Toshiba this year for $14 billion.
President and CEO Taro Shimada will continue to lead Toshiba but beginning Friday the company will implement a new management structure filling its board with members of the consortium that also includes Chubu Electric Power Co. and Orix Corp.
The company, that once dominated the electronic industry around the world, including the United States, was still rebounding from the accounting scandal that started in 2015 when managers overstated its profits for seven straight years to a total of $1.59 billion.
The string of problems included an investigation that found that Toshiba colluded with Japan's trade ministry in 2021 to suppress the interests of foreign investors.
Activist shareholders started investing in Toshiba in 2017 when the company started increasing its capital through a third-party allotment of new shares.
With increasing tension between Toshiba and such investors, the company's board agreed to accept a buyout offer from the JIP-led consortium in March.
Toshiba was founded in 1875 and grew to be one of the largest companies in Japan with products from personal computers and electronics to nuclear technology before the financial scandals.
