Dec 20 (Japan Times) - Toshiba Corp., chastened by a string of disastrous overseas acquisitions, is once again looking to buy. This time more cautiously and closer to home.
The Tokyo-based industrial giant is looking at small and midsize firms, especially those in areas adjacent to its own infrastructure services and digital technology businesses, Chief Executive Officer Nobuaki Kurumatani said in an interview.
Toshiba’s compiling a list of targets and is considering borrowing to bankroll the deals, but the former banker pledged to tread cautiously to avoid past mistakes. It’s still trying to raise capital by unloading its 40% slice of Kioxia Holdings Corp. though Kurumatani wouldn’t be drawn on when its chip spinoff might revive its delayed initial public offering.
Toshiba, once synonymous with the global ascent of corporate Japan, is trying to put years of scandal and missteps behind it. It narrowly avoided a delisting from the Tokyo Stock Exchange three years ago after multibillion-dollar losses at its Westinghouse U.S. nuclear unit pushed liabilities beyond its level of assets. It was forced to sell its prized semiconductor business and take an infusion of cash from a large contingent of activist shareholders. The writedowns and accounting scandals triggered a management shakeup and the appointment of Kurumatani, an outsider. Its shares have fallen 19% this year.
