Why the funds mistreat Toshiba’s stew
Toshiba has said it wants to split into two companies, no longer three: many shareholders are not happy. Here because
Toshiba in turmoil.
Japanese conglomerate Toshiba, which focuses specifically on electronics, said it plans to split into two companies, no longer three.
THE OPPOSITION OF THE SPECULATIVE FUNDS
However, Reuters writes, the plan is likely to be thwarted by foreign hedge funds. Many of them are opposed to any kind of spin-off, and would rather have the company – whose reputation was tainted by a tax scandal in 2015 and the bankruptcy of one of its subsidiaries two years later – to give up the listing.
WHAT THE TOSHIBA PLAN PROVIDES
Toshiba's restructuring plan provides for the separation of the unit linked to electronic devices and that which deals with power chips . Previously, he wanted to split into three companies: one dedicated to energy and infrastructure, one to electronic devices, and one to flash memory chips.
AND TO THE SHAREHOLDERS?
Toshiba also wants to increase the share of profits distributed to shareholders from 100 to 300 billion yen (2.6 billion euros) within two years.
After the announcement, its shares rose 1.6 percent in Japan, where it is listed.
THE WORDS OF THE CEO
The CEO of the conglomerate, Satoshi Tsunakawa, explained that the new restructuring plan is simpler than the previous one and will save money and facilitate partnerships with other companies.
AGGREGATE THE COMPARISON WITH SHAREHOLDERS?
"We have not changed the plan to avoid confrontation with shareholders," Tsunakawa added.
The restructuring proposed by Toshiba will be put to the vote of the shareholders in an extraordinary general meeting convened for next March; the approval threshold was set above 50 per cent.
Some investors suspect that the new plan was designed to circumvent a vote that would have required two-thirds of the shareholders to vote in favor, not half. And this is because the spin-offs must be approved by two thirds of the shareholders if the value of the assets that are seconded from the parent company is greater than one fifth of the total.
Toshiba denied this reconstruction, arguing that even a three-part split would require two-thirds shareholder approval.
RELATIONS WITH FOREIGNERS AND WITH THE JAPANESE GOVERNMENT
Toshiba has a stormy history with its foreign shareholders, who together own nearly 30 percent of the company.
In 2021, a survey conducted at the request of shareholders found that Toshiba was colluding with the Japanese Ministry of Commerce, intent on preventing foreign partners from gaining greater influence over the company. The Tokyo government considers Toshiba a strategic company due to its defense technologies and nuclear energy.
TOSHIBA PROGRAMS ON ELEVATORS, POS AND CHIPS
Today Toshiba announced that it plans to begin the sales process of its unit dedicated to elevators and lighting, and added that it no longer regards Toshiba Tec – which makes POS and copiers – as a core business .
Toshiba also intends to sell its stake (40.6 percent) of Kioxia, a company that produces memory chips and which – at the request of the conglomerate – is expected to proceed with an initial public offering (IPO) shortly.
Toshiba will sell nearly all of its 60 percent stake in its air conditioning division to US-based Carrier Global for $ 870 million.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/toshiba-divisione-due-societa/ on Mon, 07 Feb 2022 13:41:44 +0000.