Toshiba Corp. (6502.T) is wrestling with difficult issues as it seeks shareholder approval for its proposal to split into three firms, with some investors concerned that it may set a lower preliminary bar for approval than they prefer.
The scandal-plagued Last month, the Japanese conglomerate unveiled its split plan, which goes counter to investor calls for Toshiba to be taken private and was partially meant, according to sources, to entice activist shareholders to sell their interests.
TOKYO, Japan, December 9 (Reuters) – Toshiba Corp. (6502.T) is wrestling with difficult issues as it seeks shareholder approval for its proposal to split into three firms, with some investors concerned that it may set a lower preliminary bar for approval than they prefer.
The scandal-plagued Last month, the Japanese conglomerate unveiled its split plan, which goes counter to investor calls for Toshiba to be taken private and was partially meant, according to sources, to entice activist shareholders to sell their interests.
However, much about the EGM is unknown, including how Toshiba will word any motions and when they will take place. Under Japanese law, the EGM would also be non-binding, allowing Toshiba to establish the threshold for shareholder approval.
According to a Toshiba representative, the EGM’s details, including the level of approval, are still being worked out. Some shareholders have expressed dissatisfaction with Toshiba’s decision to require merely a simple majority at the EGM.
“If the company needs two-thirds in two years, they should set the same bar today,” said a source at a big hedge fund shareholder who asked not to be identified because he was not authorized to speak to the media.
