TOKYO (Reuters) – Toshiba shareholders voted against the conglomerate’s multi-company restructuring plan on Thursday and rejected a separate motion that called on the group to seek takeover offers.
The proposal to seek buyout offers or a minority investment by private funds was made by 3D Investment Partners, Toshiba’s second largest shareholder, and was backed by group largest shareholder Effissimo Capital Management and conglomerate third largest shareholder Farallon CapitalManagement.
Each proposal had to obtain 50% of the votes to be adopted. Voting details were not immediately available.
Some shareholders told Reuters they expect one or two of the investors to nominate their own board representatives at Toshiba’s annual shareholders’ meeting in June, for the company to seek bids. buyout by private funds.
A buyout by private funds could allow activist investors, who have bought shares in the conglomerate over the past six years, to exit with solid returns.
Toshiba has previously rejected calls to seek takeover bids, arguing that potential offers suggested so far were not compelling enough and would raise concerns about the impact on its business and its people.
The composition of the board could also change, as it is blamed for conducting a flawed strategic review that led to plans to break up the company.
Paul Brough, the chairman of the strategic review committee, has indicated that he would reconsider his position if the split plan is rejected, according to consultancy firm Institutional Shareholder Services (ISS).
(Report Makiko Yamazaki; French version Camille Raynaud)
Copyright © 2022 Thomson Reuters