Exclusive-Toshiba to propose Elliott, Farallon executives join its board, sources says




  • In US
  • 2022-05-23 12:37:39Z
  • By Reuters
 

By Makiko Yamazaki

TOKYO (Reuters) -Toshiba Corp plans to propose giving two of its major hedge fund shareholders seats on its board, people familiar with the matter said, a move that could give foreign investors more influence over the troubled Japanese conglomerate.

Toshiba plans to nominate executives from Elliott Management and Farallon Capital Management for board seats ahead of its annual shareholder meeting in June, said the people, who declined to be identified because the matter has not been made public.

Three of the people said Toshiba would propose an Elliott executive, and two of them said it would also propose one from Farallon.

The move could mark a turning point in a long battle between Toshiba's management and its activist shareholders.

A Toshiba spokesperson said the company hadn't finalised its board director nominees, adding it would disclose its decisions promptly once they had been made.

Farallon, Toshiba's third-largest shareholder with a stake of more than 6%, and Elliott, which sources say owns just under 5% of Toshiba, didn't immediately respond to requests for comment.

Toshiba has delayed board director nominations, saying it is trying to ascertain whether there are any conflicts of interest for some candidates.

Bringing activist shareholders onto a board is relatively rare in Japan.

But this is slowly changing. In 2019, Olympus Corp brought a ValueAct Capital partner onto its board as the medical equipment firm saw the San Francisco-based fund as a potential catalyst for change at the firm, which was reeling from an accounting scandal.

Greater influence for hedge fund shareholders could also raise the chance of a deal to take Toshiba private.

Farallon said in March it believed taking Toshiba private would maximise value for shareholders and was the only solution for Toshiba to fix its governance, capital allocation issues, and the deep mistrust among its shareholders.

Toshiba, which has since 2015 been bedevilled by accounting and governance crises, set up a special committee last month to explore strategic options, including potential deals to go private, after shareholders voted down a management-backed restructuring plan.

It said 10 potential investors had signed confidentiality pledges, without identifying them.

(Reporting by Makiko Yamazaki Editing by David Dolan and Mark Potter)

COMMENTS

More Related News

Japan
Japan's state-backed JIC hires SMBC Nikko for potential Toshiba deal -sources
  • US
  • 2022-06-28 09:07:43Z

State-backed Japan Investment Corp (JIC) has hired SMBC Nikko Securities as its financial adviser for its pursuit of a potential equity investment in...

Prudential (LON:PRU) earnings and shareholder returns have been trending downwards for the last five years, but the stock advances 4.0% this past week
Prudential (LON:PRU) earnings and shareholder returns have been trending downwards for the last five years, but the stock advances 4.0% this past week

For many, the main point of investing is to generate higher returns than the overall market. But in any portfolio...

Japan
Japan's Toshiba shareholders approve 13 nominations to board

Toshiba shareholders approved 13 nominated directors to its board Tuesday, as the Japanese technology giant struggles to restore its one-time glory and set a...

In historic shift, Toshiba board gains two directors from activist hedge funds
In historic shift, Toshiba board gains two directors from activist hedge funds
  • US
  • 2022-06-28 03:19:16Z

TOKYO (Reuters) -Toshiba Corp shareholders voted in two board directors from activist hedge fund investors at its annual general meeting on Tuesday - an...

Investors who have held Tassal Group (ASX:TGR) over the last three years have watched its earnings decline along with their investment
Investors who have held Tassal Group (ASX:TGR) over the last three years have watched its earnings decline along with their investment

Many investors define successful investing as beating the market average over the long term. But the risk of stock...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

  • Bobbygef
    (2022-05-24 09:08:37Z)

    walmart pharmacy viagra apollo pharmacy online
    pharmacy online drugstore online pharmacies
    canadian viagra generic pharmacy https://swenqw.company.site/

    REPLY
  • Bobbygef
    (2022-05-24 09:29:38Z)

    navarro pharmacy miami canadian pharmacy online
    canadian drugs pharmacy canadian pharmacy online
    pharmacy in canada https://site656670376.fo.team/

    REPLY
  • Bobbygef
    (2022-05-24 09:30:21Z)

    prescription drugs from canada [url=https://pharmacies.bigcartel.com/pharmacies-in-canada-shipping-to-usa/#]canadian prescriptions online [/url]
    canadian pharmacies online pharmacies shipping to usa
    online drugstore https://swenqw.company.site/

    REPLY
  • Bobbygef
    (2022-05-24 09:42:42Z)

    pharmacy online prescription canadian pharmaceuticals online
    online pharmacies canada pharmacy online no prescription
    pharmacy cheap no prescription https://avuiom.sellfy.store/

    REPLY
  • Bobbygef
    (2022-05-24 09:59:55Z)

    canadian pharmacy drugs online medicine online order
    canada drugs online online pharmacy canada
    canadian pharmacies https://canadian-pharmacy.webflow.io/

    REPLY

Top News: US