The tender offer led by a buyout fund of Japanese banks and companies called Japan Industrial Partners. Chairperson Akihiro Watanabe asked shareholders to back the proposal, saying it is the only option for Toshiba to return to its former strength.
"Today will be a milestone for Toshiba as we try to put eight years of difficult times behind us," Watanabe said, referring to an accounting scandal that came to light in 2015 and a spate of other problems that followed, including massive losses in its U.S. nuclear business.
Toshiba also reported a $176 million loss for the April-June quarter on $5 billion in sales, down nearly five per cent from the previous year.
It did not give a full fiscal year profit projection, citing uncertainties in its computer chip business. If the proposal succeeds, it will be a major step in Toshiba's yearslong turnaround effort, allowing it to delist from the Tokyo Stock Exchange.
President Taro Shimada said the deal was "best for Toshiba and its stakeholders" and that the company should be able to improve its earnings under the JIP-led consortium.
If successful, the company has said the buyout plan will allow Toshiba to cut ties with overseas activist shareholders seeking short-term shareholder returns and rebuild its business under a more stable shareholder base.