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Hedge fund in line for $768m profit from Toshiba deal

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Effissimo Capital Management, a Singapore-based activist hedge fund, could be in line to make a profit of around ¥100 billion ($768 million) from Toshiba Corp’s buyout by a consortium led by domestic private equity firm Japan Industrial Partners, according to a report by Bloomberg.

Toshiba has accepted a ¥4,620 a share offer from the consortium to acquire the business, which means that the value of Effissimo’s stake has roughly doubled since it disclosed its holding back in 2017.

Exactly how much Effissimo, Toshiba’s largest shareholder, paid for its 9.9% stake, isn’t known, but according to Bloomberg News analysis of the fund’s shareholding disclosures, the average price paid is estimated to be around ¥2,330 a share. 

That suggests Effissimo will book a capital gain of ¥98.2 billion if it sells its shares into the tender offer expected to start in late July. 

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