Toshiba shareholders on Thursday voted against its plan to spin off the devices unit, but a separate motion backed by activist shareholders that called for the conglomerate to solicit buyout offers also failed to gain sufficient support.
The result of the extraordinary general meeting appears to leave Toshiba with no immediate clear direction, still mired in a four-year scandal-filled battle between management and foreign activist hedge funds.
The proposal to seek private equity buyout offers or a minority investment was made by Singapore-based 3D Investment Partners, Toshiba’s No.2 shareholder and was also supported by top shareholder Effissimo Capital Management and No. 3 shareholder Farallon Capital Management.
Each proposal needed 50% of the vote to pass. A breakdown of the voting was not immediately available.
However, Hong Kong-based activist fund Oasis Management voted in favour of a shareholder proposal demanding Toshiba solicit buyout offers from private equity firms, Reuters learned on Wednesday.
Oasis joined a chorus of other hedge fund investors who have opposed the Japanese conglomerate’s plan to break itself up and called on the company to look at alternatives ahead of the extraordinary meeting on Thursday.
Oasis declined to comment.
Toshiba said it would continue to make every effort to gain shareholder support for the break-up plan.
- Reuters with additional editing by Jim Pollard
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