TOKYO (Reuters) -Toshiba Corp’s plan to spin off its devices unit had a shareholder support rate of 39.53%, while a separate call backed by activist shareholders to seek buyout offers garnered 44.60% support, a breakdown of the vote showed.
Shareholders voted down the competing proposals at an extraordinary meeting on Thursday, leaving the direction of the Japanese conglomerate uncertain. Each proposal needed 50% of the vote to pass.
For the management-backed spin-off plan, nearly 60% of votes cast were against. Opposition to the plan had been widespread, including from Toshiba (OTC:TOSYY)’s three biggest shareholders as well as proxy shareholder advisory firms.
About 55% of votes were cast against the competing proposal from Singapore-based 3D Investment Partner – Toshiba’s second-biggest shareholder after Effissimo Capital Management – which called for the conglomerate to solicit private equity buyout offers or minority investment.
The proposal from 3D, which owns over 7% of Toshiba, had the backing of other activist shareholders. Proxy advisory firm Institutional Shareholder Services (ISS) had advised against it.
Source : Reuters