Toshiba to break up into two companies instead of three

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The revised plan is expected to face pushback from foreign hedge funds, many of which have been opposed to any kind of split

Toshiba's headquarters in Tokyo, Japan, April 7 2021. Picture: Picture: KIYOSHI OTA/BLOOMBERG

Under the new restructuring, Toshiba will just split off its device business, including its power chip unit. Previously it had aimed to break up into three companies — one for energy and infrastructure, one for devices and one for flash memory chips. Some investors have said they suspect the new plan is designed to allow Toshiba to avoid a shareholder vote that would have required two-thirds approval.

Toshiba said even a three-way break-up would not need two-thirds approval under recently revised legislation.

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