Toshiba announced that it "recommends" shareholders to apply for a tender offer for TOB = shares in response to a proposal for an investment fund that aims to eliminate management confusion by delisting its shares. Going forward, the focus will be on how far the number of shareholders who support the proposal will expand.
In March, Toshiba accepted a proposal by Japan Industrial Partners, an investment fund, to conduct a tender offer for TOB=shares with the aim of effectively eliminating overseas investment funds called activists.
On the other hand, the Board of Directors has previously reserved its position with respect to shareholders on the grounds that the purchase price set by the investment fund is low.
According to the announcement, Toshiba Corporation held a meeting of the Board of Directors on June 3 and resolved to encourage shareholders to apply for the TOB.
In making the resolution, the Special Committee, which is composed of outside directors, expressed the opinion that the purchase price was fair and reasonable, stating that the company's business performance improvement plan expected in the future was not credible even if it looked at the performance of the past 8 years, and that there was no prospect of improvement in the external economic environment for the time being.
The fund is scheduled to launch the TOB as early as the end of next month, and the focus will be on how far the shareholders who support the proposal will expand in response to the company's "recommendation" position.
Toshiba President Shimada: "Current shareholder composition: Difficulties in growing"
At an online press conference, Toshiba President Taro Shimada stated, "With the current shareholder structure, it is difficult to implement a consistent strategy over the medium to long term and achieve growth.