Toshiba’s shareholders have voted to reject the split-off proposed by Toshiba’s management. The acquisition proposed by shareholders was denied as well.
In late 2021, Toshiba’s management proposed splitting the organization into separate entities. This week, shareholders rejected the proposition through an official vote.
Farallon Capital Management, Toshiba’s third-largest shareholder, called on management to consider an acquisition. This call was supported by several shareholders, including 3D investment Partners, a major investor. The friction led to the resignation of CEO Satoshi Tsunakawa earlier this year. A recent vote revealed that both propositions fail to pass.
Difficult stalemate
The stalemate presents Toshiba with a difficult choice. The shareholder vote wasn’t legally binding, meaning Toshiba is theoretically able to proceed with its separation plans. On the other hand, the organization wants to avoid alienating its shareholders.
Response
In an official reaction, Toshiba states that it has taken note of the vote’s results. Management is taking time to discuss the outcome. According to experts, Toshiba may adjust its separation plans once more to increase shareholder support.
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