TOKYO (CNA) – Toshiba Corp’s second-largest investor called yesterday for an extraordinary shareholder meeting for a vote to force the Japanese company to get two-thirds support before continuing with a controversial plan to split in three.
The proposal by Singapore-based hedge fund 3D Investment Partners marks the latest in a long and acrimonious battle between the once-mighty Japanese conglomerate and a number of its foreign shareholders, many of them activist funds.
In a statement, 3D highlighted concerns about the cost of Toshiba going ahead with its split before getting a mandate from shareholders. It also called for Toshiba to continue with its
“There is no rationale for pursuing at great expense the separation plan without knowing whether a sufficient number of Toshiba shareholders will ultimately provide consent,” the fund, which owns more than seven per cent of Toshiba, said.
With its proposal, 3D is effectively trying to force the conglomerate to bring forward by more than a year a legally mandated vote requiring backing from two-thirds of shareholders.
Officially, the vote is not slated to be held until the annual shareholders meeting in 2023.