Toshiba Corp said it now aims to break up into two companies instead of three and also unveiled a big boost to planned shareholder returns in an effort to appease angry investors.
Its revised plan is still expected, however, to face much pushback from foreign hedge funds, many of whom have been opposed to any kind of split and would prefer that the scandal-ridden Japanese conglomerate be taken private.
TOSHIBA PLANS TO SPLIT INTO THREE FIRMS, SHAREHOLDER REACTION IN FOCUS
Under the new restructuring, Toshiba will just split off its device business, including the power chip unit. Previously it had aimed to split into three companies – one for energy and infrastructure, one for devices and one for flash memory chips.
The industrial conglomerate now also plans to increase shareholder returns to 300 billion yen ($2.6 billion) over the next two years which compares to an earlier target for returns of 100 billion yen.