Japan’s Toshiba on Monday announced plans to split into two companies, revising a controversial proposal to divide into three following a tumultuous period for the storied industrial conglomerate, IgbereTV reports.
The group said it plans to spin off its device segment, including its semiconductor business, in a bid to speed up decision-making and boost stock performance.
Shareholders, who have clashed with management on the best way forward for the troubled company, must still approve the proposal in a vote expected in March. The original spin-off plan faced stiff opposition from some key investors.
The firm also said it will unload its stake in air-conditioning business Toshiba Carrier and seek to sell its elevator and lighting units.
“We believe a spin-off is optimal,” president and CEO Satoshi Tsunakawa told investors, promising it would “enable more agile and flexible operations.”
He said the sprawling business “struggled with the conglomerate discount and slowness in decision-making” in the past, and streamlining operations would allow investors to choose the portion of the business that interested them
