(Bloomberg) — Toshiba Corp. rose on Friday after the Nikkei reported the company is weighing a plan to take itself private. The Japanese conglomerate is in talks with financial institutions on a buyout plan that would be led by domestic investors, the paper said.
Shares were up as much as 3.9% in morning trading in Tokyo. Toshiba spokesman Takashi Ebina said the company hasn’t made any decision yet and is considering all strategic options to boost corporate value and rebuild shareholder trust.
Toshiba Shareholders Reject Proposals to Split or Consider Sale
The news came after Toshiba shareholders rejected a plan by management to split the 146-year-old conglomerate into two while also voting down a proposal by an activist investor to reconsider alternative options including a sale. The company may still continue with plans for the two-way split despite the defeat, ahead of a binding vote next year. Chief Executive Officer Taro Shimada said on Thursday that the firm would consider all options to improve corporate value.
“This event closes almost all options for Toshiba management,” said Jefferies analyst Atul Goyal after the vote. “Now Toshiba may be pushed to quickly seek a buyout offer and will find it difficult to wait for a Kioxia listing.”
(Updates with shares reaction)
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