For some months now talks about a possible spin-off in Japan based multinational conglomerate Toshiba Corp. (TYO: 6502). Well the company held annual general meeting in which 39.53% of the shareholders with voting rights voted in favor of a plan to spin-off the company’s devices unit.
On the other hand, a separate group backed by activist shareholders advocating for a buyout attracted a 44.60% support of the total vote. The shareholders voted for the competing proposals at the AGM which took place last week.
Each proposal needed a minimum of 50% of the shareholders’ vote to pass. Almost 60% of the total votes casted were against the management supported spin-off. Leading the group opposing the management supported spin-off included the company’s three biggest shareholders as well as proxy shareholder advisory firms.
Almost 55% of the casted votes were against the competing proposal from Singapore based 3D Investment Partner which is the second largest shareholder in Toshiba.
Effissimo Capital Management, is the largest shareholder in Toshiba called for the company to solicit private equity buyout offers or minority investment.