Toshiba Corp has announced its intention to split into two companies instead of three and has also announced a big profit increase with which it plans to reward shareholders in an effort to appease unruly investors.
However, his new plan is expected to face strong opposition from foreign funds, many of whom have opposed any sort of breakup and would prefer the scandal-ridden Japanese conglomerate to be delisted. .
Under the new restructuring, Toshiba will simply separate its device business, including its power chip unit. Previously it intended to be divided into three companies: one for energy and infrastructure, another for devices and another for “flash” memory chips.
Toshiba also aims to increase shareholder compensation to 300 billion yen ($2.6 billion) over the next two years, up from the previous target of 100 billion yen.
Shares of the industrial conglomerate closed up 1.6% on the news.
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