TOKYO, November 22 — Shareholders of Japan’s Toshiba Corporation voted in favour of a crucial stock consolidation at an extraordinary meeting held today, paving the way for its delisting from the Tokyo Stock Exchange scheduled for next month, reported Xinhua.
The approval granted a consortium led by Japan Industrial Partners Inc (JIP) the opportunity to acquire the remaining shares that were not part of its successful ¥2 trillion (RM62 billion) takeover bid for the troubled Japanese conglomerate, originally founded in 1875.
The JIP-led consortium successfully secured 78.65 per cent of Toshiba’s shares during the takeover bid, surpassing the required two-thirds majority needed for the consolidation proposal’s approval at the shareholder meeting.
Under the endorsed plan, a total of 93 million shares will undergo consolidation, resulting in the conversion of individual shares to a single consolidated stock. This move will effectively reduce the holdings of general shareholders to less than one share each. Subsequently, the JIP-led consortium will proceed to acquire the remaining shares, ultimately making Toshiba its wholly-owned subsidiary.
Toshiba has said the primary goal behind the delisting is to sever ties with overseas activist shareholders, shifting Toshiba’s focus away from short-term returns and towards strategic growth areas such as social infrastructure and quantum technology.
Last month, Toshiba announced that it will be delisted from the Tokyo Stock Exchange on December 20, ending its 74-year-long history as a public company, as it seeks to rebuild itself following a takeover bid.
In its last earnings announcement before the scheduled delisting, Toshiba on last Tuesday reported a net loss of ¥52.14 billion for the six months ending in September. — Bernama-Xinhua
