(Bloomberg) -- Toshiba Corp. plans to return an additional 150 billion yen ($1.37 billion) to shareholders and establish a strategic review committee to examine options for the business.
The Japanese energy-to-electronics conglomerate is under pressure from 3D Investment Partners and other investors to run a strategic review of the business, after private equity firm CVC Capital Partners proposed in April taking the company private for $21 billion. While that bid has stalled, 3D Investment argued Toshiba’s board had to explore any serious interest in the company and rebuild shareholder trust.
Toshiba said Friday it has appointed UBS as financial advisor and will consider potential offers. It made the announcement while releasing its quarterly earnings.
The company’s stock has seen large swings since the CVC bid, with the shares closing as high as 4,895 yen on April 15 before falling in recent weeks. It was little changed after the new shareholder return announcement at about 4,465 yen.
It’s not clear whether other reported bidders will proceed with a formal offer. After CVC’s initial approach, private equity firm KKR & Co. and Canadian investment giant Brookfield Asset Management Inc. began exploring potential offers, Bloomberg News has reported. Bain Capital has entered into discussions with Japanese banks, including units of Mizuho Financial Group Inc. and Sumitomo Mitsui Financial Group Inc., to secure funding for a potential bid, Reuters has reported.
Satoshi Tsunakawa, who took over as CEO in April, offered assurances that Toshiba would remain a strong Japanese company and invest in research and development. His comments appeared aimed at reassuring employees and business partners in the wake of the CVC offer.
Separately, Toshiba is investigating a claim by the hacker group DarkSide that it breaked the conglomerate’s computer systems. The group is claiming to have stolen information on management, new businesses and personal information.
Toshiba will provide specifics on how it intends to execute the shareholder return plan in June. It has not yet decided its dividend plan for the year ahead, but will maintain its basic policy and look to increase, it said.
(Updates with share price move and further background from third paragraph)
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