(Bloomberg) — Toshiba Corp. gained as much as 3.5%, after the Japanese company said it would scrap plans to split the company in two and set up a committee to consider “strategic alternatives,” including bids to take the company private.
The embattled company said the new committee will comprise Toshiba’s independent directors, according to a statement late Thursday. It will begin discussions with potential investors and sponsors as soon as practical.
Toshiba has been struggling to regain its footing after years of scandal and management missteps. It was forced to spin off its prized memory-chip business, now called Kioxia Holdings Corp., after an ill-fated push into the nuclear business.
That opened the door to activist investors who have battled with management over the company’s strategic direction. Toshiba initially planned to split into three companies, then revised the plan to divide into two companies. But shareholders rejected that new plan in a vote in March.
Activists led by 3D Investment Partners Pte. have pushed for the company to consider alternatives, including a potential sale. Effissimo Capital Management Pte., now the company’s largest shareholder, said it had agreed to tender its entire stake if U.S. private equity firm Bain Capital launched a tender offer for two-thirds or more of Toshiba.
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