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Toshiba shareholders accuse the conglomerate of overlooking the privatization bid

Some of Toshiba’s major shareholders have accused the Japanese conglomerate of failing to fully pursue negotiations with private equity buyers, saying they would put pressure on the board to revive discussions on the company’s full acquisition. I am saying.

Investors claim that Toshiba hasn’t received compelling signs of the deal, but at least two private equity buyers are more than the company’s current $ 4,743 per share. He said he believed he had discussed a rating that was at least 25% higher.

As a measure of concern, shareholders who hold more than 30% of Toshiba’s stake in bulk will vote against the Financial Times, as a matter of fact, the proposal submitted in November, which defeats the industry 140 years ago. He said there was.Giant For three separately listed businesses Rather than pursuing complete privatization.

Some managers said they suspected that at least an additional 15 percent of Toshiba’s stock would follow when voting for the proposal took place early next year.

Tripartite split becomes an investor Consider an offer for privatization, One of the largest shareholders said it was a poor alternative, given its extent Governance issues It has been taken up by many Toshiba issues in recent years.

“Implementing a three-way split without a proper governance structure exacerbates governance issues,” said one of the largest shareholders’ managers.

The division’s proposal comes from a month-long strategic review that Toshiba’s second-largest shareholder, 3D Investment Partners, said in a letter to the company that it had reached “premature conclusions of an improper process.” Was born.

At least two of Toshiba’s 20 largest holders have told the Financial Times that they are also considering more urgent tactics. Board purge..

“There is an important disclosure we are still waiting for regarding the company’s attempt to solicit private equity buyers and offer realistic prices. I’ve heard the company ask us for it. If not, EGM is certainly an option, “said one major shareholder manager.

Shareholder intensified upheaval has been told by several funds to the FT as a “misleading” statement by a strategic review committee gathered to consider the company’s long-term future and encourage action to the board. Following last month’s announcement.

The committee said it was in November Was involved with 6 private equity companies — It is understood to include KKR, Bain, CVC, and Blackstone — the price level assumed by the buyout fund to discuss full privatization was “not convincing compared to market expectations”. ..

However, some of Toshiba’s largest investors said after conducting their own research, there is a strong reason to question the effectiveness of both the SRC process, which does not represent a formal auction, and the consequences. rice field.

In particular, an important group of investors believe that at least two PE companies have told SRC that the acquisition can theoretically value Toshiba at over 6,000 yen per share. This is a premium of about 20% of the company’s stock price under discussion. ..

Toshiba was not immediately asked for comment. A Toshiba spokeswoman said on Friday that the company “continues to provide sincere explanations to shareholders.” The company also Previous statement There was a recommendation that the SRC was “unanimously” approved by the Board.

Within the last two weeks, investors have been contacted by Makinson Cowell, an external advisor to investor public relations activities that conducted a survey on behalf of Toshiba in July. Investors said they left the researchers with little doubt about their anxieties about the SRC process.

They cited the fact that McKinson Cowell’s latest findings were not shared with investors, despite allegations of Toshiba’s efforts to increase transparency, another source of concern, a Toshiba spokesman said. Added the confirmed policy.

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Toshiba shareholders accuse the conglomerate of overlooking the privatization bid

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