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Toshiba: memory lapse leaves investors eager to forget

Buyout will end the succession of turnaround plans with their empty promises to shift away from conglomerate’s legacy businesses

Toshiba is turning the page on a painful chapter. A group led by local buyout company Japan Industrial Partners plans to take the 147-year-old conglomerate private. The consortium will launch a $14bn tender offer on Tuesday.

The offer, which values the electronics-to-power stations maker at ¥2tn ($14bn), would be slightly higher than its ¥1.99tn market value on Monday. That indicates the deal will go through.

When Toshiba first received a buyout proposal from the consortium in February, the price was at a discount to Toshiba’s market value. The ¥4,620-per-share offer price would normally have been too low for shareholders to take seriously. They have struggled through an eight-year succession of activist battles and accounting scandals, spurning previous buyout offers.

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