3D Investment Partners Pte. Ltd. (together with the funds it manages, “3D”), one of Toshiba’s largest shareholders, today sent a letter to the Board of Directors (the “Board”) and Executive Committee of Toshiba Corporation (“Toshiba” or the “Company”) (6502.T).
In the letter, 3D indicates that Toshiba must undertake three critical actions prior to the AGM: develop and disclose a mid-range plan, solicit indications of interest from buyout firms and consult with shareholders concerning the Board’s composition.
The full text of the letter is copied below:
Dear Members of the Board and Executive Committee,
Last month, Toshiba Corporation (“Toshiba” or the “Company”) faced its fourth consecutive contested shareholder meeting. Most recently, shareholders overwhelmingly rejected the Company’s proposed two-way split plan that had been enthusiastically promoted by the Board of Directors. Now, for the fourth time in four meetings, shareholders have sent a message of displeasure to the Board.
Once an iconic Japanese company, Toshiba has become a corporate governance embarrassment for Japan. It is time for the Board to take decisive action to restore Toshiba’s reputation.
We believe there are three imperatives, all of which must be acted upon in parallel prior to the upcoming AGM, to ensure the Company addresses the most important corporate governance issues in time to garner shareholder support:
For several years, 3D and other large Toshiba shareholders have been disappointed by the actions of this Board and the Company’s management. It is time for Toshiba to turn a new page and to begin to fulfill the full promise of Toshiba, restoring it to its rightful place as one of corporate Japan’s best companies.
We urge you to immediately take these three steps to begin the process of rebuilding trust between Toshiba and its shareholders.
Kindest regards,
About 3D Investment Partners Pte.
3D Investment Partners Pte. Ltd is an independent Singapore-based Japan focused value investing fund manager founded in 2015. 3D Investment Partners Pte. Ltd. focuses on partnering with managements who share its investment philosophy of medium- to long-term value creation through compound capital growth and a common objective of achieving long-term returns.
Contacts
3D Investment Partners Pte. Ltd.
3DIPartners@3dipartners.com