Toshiba Backs JIP-Led Buyout in Boost to Deal’s Chances (2)

Toshiba Corp. said it supports a buyout offer led by domestic private equity firm Japan Industrial Partners Inc., boosting the long-discussed takeover’s likelihood of going through.

The Tokyo-based firm recommended that shareholders tender their shares in the offer. The buyout price is at the low end of estimates from outside experts based on financial projections, Toshiba said, but executives added that the company’s business outlook remains shaky.

The prospects for flash memory chipmaker Kioxia Holdings Corp. remain “very severe,” despite promising demand for power semiconductors, Chief Executive Officer Taro Shimada said at a news conference Thursday. Shimada had previously ...