Tokyo, Mar 24 (EFE).- Toshiba shareholders voted Thursday against the restructuring plan proposed by the company’s board, which would have split it into two independent companies on the grounds that this would improve its management and profitability.
This non-binding vote was seen as key to obtaining clues about the evolution of the dispute that the management leadership and its activist investors have been involved in for more than four years.
The restructuring plan was first announced in November last year with the vision of dividing the conglomerate into three companies – one specialized in infrastructure, another in electronic devices and another in the rest of the assets, including the Kioxia memory subsidiary.
The plan was revised in February to two companies – infrastructure and electronics, but the change did not please activist investors already upset with the initial proposal.
The move required at least 50 percent of the votes.
Toshiba’s three largest shareholders, Effissimo Capital Management, 3D Investment Partners and Farallon Capital Management, which together account for 20 percent of the vote, had long shown their opposition, as well as Institutional Shareholder Services and Glass Lewis.
“We will take into consideration the opinions of the shareholders and will continue to study how we can boost the value of our company,” said Taro Shimada, who currently serves as president.
For several years the company has been mired in a tumultuous conflict between management and activist investors from whom Toshiba received capital to prevent the bankruptcy of its nuclear subsidiary, Westinghouse Electric, in 2017.
Any binding restructuring plan must be approved at the annual general meeting in June 2023. EFE