Toshiba confirmed that a previously disclosed plan to take the struggling Japanese company private in a $14 billion sale will begin on Tuesday.
The move follows years of instability for the business, which once represented Japan’s economic strength but has recently been plagued by scandals, financial turmoil, and resignations.
The consortium formed by Japan Industrial Partners that will oversee the roughly two trillion yen deal includes 17 Japanese corporations and six Japanese banks.
Toshiba announced in March that the tender offer would be canceled if the consortium did not purchase at least 66.7 percent of the outstanding shares.
According to the tender offer website, the price is set at 4,620 yen per share for a period of 30 business days, which is somewhat higher than Monday’s closing price of 4,584 yen.
Toshiba reported a financial loss of 25.3 billion yen for the first quarter because to a reduction in demand at semiconductor manufacturer Kioxia, in which it owns 40%.
A shocking acquisition offer from private equity firm CVC Capital Partners two years ago cast doubt on the conglomerate’s future.
Following the withdrawal of the CVC offer, ideas were mooted to split the business up and spin off its device segment, which met with fierce opposition from some investors.
Toshiba grew into a massive conglomerate, but it has been in turmoil since a profit-padding scandal rocked the company in 2015.
The corporation also endured massive losses at its US nuclear subsidiary, followed by a turnaround that put new activist shareholders under pressure.
