Toshiba’s Top Shareholder to Vote Against a Spin-Off Plan

Singapore based activist investor providing financial planning and investment advisory services Effissimo Capital Management revealed it had resolved to vote against a potential spin-off of Japan based conglomerate Toshiba Corp. (TYO: 6502).

Effissimo made this announcement on March 10 after it came to a conclusion that the separation might damage medium- to long-term corporate value of the company. The voting is slated to take place on March 24.

Effissimo holds about 10% of Toshiba’s total stake making it the largest shareholder in the company. This is the first time the firm has come out forward revealing its stance on the matter which has under considerations for quite some time now.

About a month ago, Toshiba announced it was planning to separate into two units instead three in efforts to boost shareholders’ returns and to try and appease the angry investors.

However the company’s chief executive officer, Satoshi Tsunakawa, said the move will be subject to a shareholders’ vote an extraordinary general meeting slated for this month.

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