Slap in the face for Toshiba: its shareholders vote against dividing it and privatizing it

The extraordinary meeting of shareholders of toshiba has been a real setback for the intentions of your direction. your shareholders have voted against dividing the company in two because in his opinion it is not the best way to give Toshiba the value it has. A movement that at this point takes few by surprise, given the increase in voices against it in recent weeks and the public positioning of several of the company’s main shareholders, who not only stated that they were against its division into two independent companies, but encouraged the rest to vote, as they have done, against their management’s proposal.

Several of these shareholders, moreover, opted for a different way out: to have Toshiba’s management request proposals for purchase offers from private venture capital entities, with the intention that one or more of them would keep it and turn it into private. But this proposal has not convinced either, and has been rejected.

The company has tried by all means to convince its shareholders to accept its plan, and even appointed a new CEO by surprise only a few weeks ago to try to calm the criticism. Is about taro shimadawhich claims to be prepared to improve Toshiba’s image and situation, badly damaged after several accounting and management scandals.

But the shareholders do not think the same, since they assure that it does not have the necessary experience to carry out the radical change that Toshiba needs to straighten its situation. Among several shareholders, moreover, mistrust in him has grown, because they have verified that he follows the line of the previous management, and does not want to sell the company.

In the statement revealing the result of the extraordinary meeting, the management of Toshiba, in addition to acknowledging the rejection of the proposals to redirect the situation of the company, the management assures that it accepts the opinion of the shareholders, but that it will do everything the necessary efforts to earn your trust and reconsider your options to enhance Toshiba’s corporate value. That is to say, they continue without completely ruling out the option of dividing the company.

It is not at all clear what they will do at Toshiba, despite this vote against the shareholders. The vote of the extraordinary meeting is not binding, and Toshiba management sees the next general meeting, which according to The Register will take place in June, as the stage where they will finally approve all their plans to break up the company. They continue to insist on working to win the trust of shareholders, customers and employees, and their CEO assures that they will assess all available options to improve the value of the company, without clarifying what they are.

Meanwhile, life in the company goes on, and this week they announced that they are going to expand their chip manufacturing capacity with the investment of 840 million dollars in a new plant to manufacture energy management chips.

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