Toshiba plans to split into three but rejects calls to go private

[silversurfer]

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https://www.reuters.com/technology/toshiba-set-announce-split-into-three-firms-shareholder-reaction-focus-2021-11-12/

TOKYO, Nov 12 (Reuters) - Toshiba Corp (6502.T) outlined plans on Friday to split into three companies in an attempt to appease activist shareholders calling for a radical overhaul of the Japanese conglomerate after years of scandals.

A rare move in a country still dominated by conglomerates, Toshiba's breakup comes the same week U.S. industrial powerhouse General Electric (GE.N)called time on its sprawling empire and Johnson & Johnson (JNJ.N) announced it was splitting up too.

Founded in 1875, Toshiba plans to house its energy and infrastructure divisions in one company while its hard disk drives and power semiconductor businesses will form the backbone of another. A third will manage Toshiba's stake in flash-memory chip company Kioxia Holdings and other assets.

The plan, borne of a five-month strategic review undertaken after a highly damaging corporate governance scandal, is partly designed to encourage activist shareholders to sell their stakes, sources with knowledge of the matter have said.

A break-up, however, runs counter to calls by activist investors for Toshiba to be taken private and some major shareholders said they may challenge the plan.

The overhaul was announced after markets in Japan had closed but the company's Frankfurt-listed shares fell 4% at the open on Friday highlighting investor disappointment. The shares later recovered slightly in very low volume.

Toshiba's strategic review committee said the idea of taking the company private had raised concerns internally about the impact on its businesses and the retention of staff.

Private equity firms had also conveyed concerns about completing a deal due to possible conflicts with Japan's national security law and potential opposition from antitrust regulators, the company said.

"After much discussion, we reached the conclusion that this strategic reorganisation was the best option," Chief Executive Satoshi Tsunakawa told a news conference.

Toshiba plans to split into three after wave of scandals

Toshiba Corp outlined plans on Friday to split into three companies in an attempt to appease activist shareholders calling for a radical overhaul of the Japanese conglomerate after years of scandals.

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[oldschool]

I received a small, portable TV back around 1970. It was the first Toshiba product I had ever seen with excellent build quality. Those were the days ... Nowadays, "Made in Japan" and "Made in the U.S.A." don't always carry the same weight as they used to.