Toshiba suspends its plan to split into two companies, but considers its sale to a third party

The Japanese conglomerate Toshiba indicated that he is suspending his plan to divide the group in two companies after the rejection of the shareholders last month and weighs the possibility of a sale.

The firm announced in a statement Thursday that its management will hold discussions with private investment funds and other potential investors about potential offers.

A new special committee will also “identify which privatization offer is best for our diverse shareholder base” and report back at the annual shareholders’ meeting scheduled for June.

This decision comes after shareholders voted at the end of March, in a non-binding decision, against management’s proposal to split the company in two.

Formerly a symbol of Japan’s technological and business power, Toshiba has been immersed in several scandalsfinancial problems and high-level resignations in recent years.

Several major shareholders said in that vote that the Toshiba split would aggravate the group’s governance problems by creating more management positions and backed a sale to a private investor.

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