Toshiba shares rise on report of going private with domestic backing

[TOKYO] Toshiba rose on Friday (Mar 25) 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 per cent 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.

The news came after Toshiba shareholders rejected a plan by management to split the 146-year-old conglomerate into 2 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 2-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." BLOOMBERG