Toshiba definitively scrapped its planned split-off. The organization is discussing an alternative future. Going private is a serious possibility.
Toshiba announced it’s looking for “strategic alternatives” for the future. One option is privatisation, which would see the organization delisted.
Toshiba appointed a committee to map out its strategic options. Talks with possible investors and other sponsors will be started as soon as possible.
Martyrdom of Toshiba
The decision brings an end to a long period of unrest at Toshiba. The Japanese tech group has been hit by mismanagement and financial scandals in recent years. Its chip manufacturing operations were forced to split into what is now known as Kioxia.
Activist shareholders demanded more drastic measures, prompting Toshiba to launch a plan to split the group into parts. Other activist shareholders, led by 3D Investment Partners, campaigned for alternatives to the split, such as selling the Japanese tech group. Both plans were rejected by shareholders last month.
Selling remains an option
Nevertheless, selling and privatisation now seem to be the leading strategy. Hedge fund Effissimo Capital Management, now the largest shareholder in Toshiba, indicated that it would put its entire share package up for sale if another major shareholder — investment company Bain Capital — would make an offer for two-thirds of Toshiba’s shares. To be continued, no doubt.