TOKYO, Nov. 22 (Xinhua) -- Shareholders of Japan's Toshiba Corporation voted in favor of a crucial stock consolidation at an extraordinary meeting held on Wednesday, paving the way for its delisting from the Tokyo Stock Exchange scheduled for next month.
The approval granted a consortium led by Japan Industrial Partners Inc. (JIP) the opportunity to acquire the remaining shares that were not part of its successful 2 trillion yen (13.43 billion U.S. dollar) takeover bid for the troubled Japanese conglomerate, originally founded in 1875.
The JIP-led consortium successfully secured 78.65 percent of Toshiba's shares during the takeover bid, surpassing the required two-thirds majority needed for the consolidation proposal's approval at the shareholder meeting.
Under the endorsed plan, a total of 93 million shares will undergo consolidation, resulting in the conversion of individual shares to a single consolidated stock. This move will effectively reduce the holdings of general shareholders to less than one share each. Subsequently, the JIP-led consortium will proceed to acquire the remaining shares, ultimately making Toshiba its wholly-owned subsidiary.
Toshiba has said the primary goal behind the delisting is to sever ties with overseas activist shareholders, shifting Toshiba's focus away from short-term returns and towards strategic growth areas such as social infrastructure and quantum technology.
Last month, Toshiba announced that it will be delisted from the Tokyo Stock Exchange on Dec. 20, ending its 74-year-long history as a public company, as it seeks to rebuild itself following a takeover bid.
In its last earnings announcement before the scheduled delisting, Toshiba on last Tuesday reported a net loss of 52.14 billion yen for the six months ending in September. (1 Japanese yen equals 0.0067 U.S. dollars) ■
