Toshiba's Two-Way Split Proposal Shot Down by Shareholders
Tokyo, March 24 (Jiji Press)--Toshiba Corp. <6502> shareholders rejected the Japanese electronics and heavy machinery maker's two-way split plan by a majority vote at an extraordinary general meeting in Tokyo Thursday.
The plan had met with opposition from several foreign institutional investors ahead of the meeting. While the voting outcome is not legally binding, Toshiba may find it necessary to overhaul its group business strategy as it will likely be unable to achieve the breakup smoothly.
Meanwhile, a shareholder proposal for Toshiba to become private, among other things, was also shot down. The proposal, presented by asset management firm 3D Investment Partners Pte. Ltd., known as an activist shareholder, gained support from other major shareholders. An outside director at Toshiba had also expressed an intention to back the plan as a shareholder.
At the meeting, Toshiba's management team faced a flurry of calls for a review of its strategy. One shareholder urged the company to "buy back own shares to go private and make a fresh start," while another pointed to the need for the firm to "come up with a new structure featuring interdepartmental cooperation."
"Based on proposals we received from you today, we will consider all possible strategic options in order to boost our corporate value," Toshiba President Taro Shimada, who took office this month, said at the meeting.
[Copyright The Jiji Press, Ltd.]