Toshiba shareholders rebuff plans for break up
Toshiba shareholders have rejected plans to split the Japanese Conglomerate in two as bosses’ lengthy battle with investors over the future of the firm deepens.
Investors voted down a proposal to split up the firm on Thursday, sparking a major sell off that saw its share price plunge as much five per cent.
Bosses had looked to push through the plans at an extraordinary general meeting (EGM) in the hope of ending a turbulent period for the industrial giant, which has seen the resignation of two chief executives.
Toshiba’s previous boss Satoshi Tsunakawa stepped down earlier this month over opposition to the break up plans had raised doubts over whether the firm would press ahead.
A potential sale to private equity bidders had been floated as an alternative to a break-up, but at the EGM shareholders also rebuffed suggestions from Toshiba’s second-largest shareholder, Singapore fund 3D Investment Partners, to reopen talks with private equity firms.
Bankers at UBS had pushed to split up the firm into three last year but the plans were similarly met with firm resistance from shareholders, resulting in the plans for a two-way split.
Toshiba now sits in limbo, with boss Taro Shimada saying “appropriate to express my personal thoughts today” after the rejection.
On announcing the result to shareholders, Shimada said the company would now “consider various options to improve our corporate value.”