Toshiba considers 11 possible futures • The Register

Disgraced tech giant Toshiba has revealed it has received ten takeover proposals and has drawn up a plan to grow its digital business.

“To date, the company has received eight initial proposals for privatization, as well as two initial proposals for a strategic capital and business alliance with the company remaining listed among potential partners,” the Japanese conglomerate said in a statement. communicated. [PDF] dated June 2.

Toshiba did not say who submitted the takeover proposals, but Bain Capital is known to have expressed interest. Reports have indicated that CVC Capital Partners and KKR may also be in the running. It should be noted that CVC has already researched this opportunity.

Toshiba said none of the proposals were legally binding and that it had been in discussions with potential partners since April 21, 2022. The company promised to evaluate the proposals based on the offer price, medium and long-term improvement in Toshiba’s business value, financing arrangements and likelihood of actually being paid, in addition to whether the proposed arrangements will comply with Japan’s competition and national security laws .

Evaluations of the proposals will not be ready until after the next annual meeting of shareholders, June 28, 2022.

The proposals come after years of embarrassment and scandals, such as conspiring with government officials to pressure shareholder votes and crowd out activist foreign investors.

Toshiba attempted to split into three companies and then, when that idea was rejected, into two companies. But the split was rejected by investors, who saw it as a way for Toshiba to shirk its responsibilities.

Management’s latest attempt to chart a future course emerged yesterday, in the form of a shrewd plan for transformation. With data.

Toshiba has published its group management policy [PDF] which outlines a digital transformation effort to help the company “uncover new business potential from a data-driven perspective.

The plan calls for software-focused Toshiba staff across the company to come together to create platforms rather than individual solutions for each business unit. The Group’s management policy proposes an energy solutions platform and a purchasing data collection platform as initial projects. The document suggests that Toshiba needs to become more “software-defined” and that once its digital transformation is complete, data services will be its main source of revenue.

Revenues are also expected to reach five trillion yen ($53.9 billion) and 600 billion yen in operating profit by fiscal 2030. The plan also calls for significant growth in its data services business, from 5% of operating profit in fiscal year 2022 to 12% in fiscal year 2030. .

Toshiba also said it will “consider working with external partners” on technologies with large target markets.

Of course, the overall strategy means nothing unless new buyers agree to it – so things could change after the June shareholder meeting. ®

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