Shareholders voted against Toshiba’s plan to split the company in two. According to Toshiba, the split would leave a company focused on energy, transportation and batteries, and a company focused on services, semiconductors and storage.
Toshiba say accept the outcome and that it will reconsider its ‘strategic options’. After that, it will be determined what the company will do. During the meeting in which Toshiba’s plan was voted down, according to the Financial Times also discussed a plan that would force the company to be taken over by a company or investors. This proposal came from the second largest shareholder and was also voted down. The company announced in early February that it would split in two into a Toshiba Infrastructure Service Co. and a Device Co.
Under Service Co. would fall energy systems, infrastructure, transportation, accumulators and batteries. Toshiba’s majority stake in memory chip manufacturer Kioxia would be sold to satisfy Toshiba shareholders.
Under Device Co. would include semiconductor products, semiconductor manufacturing equipment and data center hard drives. Under Toshiba’s plan, this business would be separated from Service Co in fiscal 2023. All other businesses and subsidiaries would be divested as part of the demerger. This includes the air conditioning branch, the branch that makes elevators in buildings and a business unit that works with lighting.
It is not clear whether Toshiba will now abandon its plan to split or change it. Investors tell the FT that Toshiba’s CEO has previously said he sees something in the complete acquisition of the company by a single company or investor. Toshiba has been in bad shape for years, partly due to mismanagement, scandals and a failed move to nuclear energy.