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Toshiba Must Seek Buyout Offers, Norway's Sovereign Wealth Fund Says
- By The Financial District
- Mar 20, 2022
- 2 min read
Norway's sovereign wealth fund, the world's largest, voted in favor of a shareholder proposal requesting that Toshiba Corp. solicit buyout offers from private equity firms ahead of an extraordinary meeting on March 24, Makiko Yamazaki reported for Reuters.
Photo Insert: Toshiba has said there is no change in the board's opinion in opposing the shareholder proposal and that it will continue to make every effort to gain shareholder support for the break-up plan.
The fund voted against the Japanese industrial conglomerate's plan to break itself up by spinning off its devices business, a voting record showed. The Norwegian wealth fund owns 1.22% of Toshiba, according to Refinitiv.
Explaining the rationale for its vote, Norway's fund - operated by Norges Bank Investment Management (NBIM) - said it considers such factors as whether there is sufficient transparency and whether all shareholders are treated equitably when evaluating corporate transactions.
Similarly, the State Board of Administration of Florida, with a 0.22% stake in Toshiba, voted against the management-backed break-up plan and in favor of the proposal from Singapore-based 3D Investment Partners.
Even though their stakes are small, support from such prominent institutional investors for 3D's proposal could add momentum to activist shareholder demands that the board fully explore alternatives to the break-up. Earlier this week, one of Toshiba's external board directors said he would back 3D's proposal, breaking ranks with the public stance of the company boards.
Toshiba has said there is no change in the board's opinion in opposing the shareholder proposal and that it will continue to make every effort to gain shareholder support for the break-up plan.
Glass Lewis, an influential proxy advisory firm, has backed 3D's proposal but rival Institutional Shareholder Services has not recommended voting for it even though it is opposed to the spin-off plan.
