TOKYO (Reuters) – Tokyo Stock Exchange on Friday agreed Toshiba Corp. to return to the first tranche of the course amid calls from some shareholders for better regulation at the Japanese industry fusion.
Toshiba, which filed a request for the return in April last year, will move back to the first division on Jan. 29. The company has stated that the yield could help attract purchases from investors in stock indices.
The Japanese company was relegated to the second division in 2017 after major writedowns at their U.S. nuclear power industry caused burdens to exceed assets – a situation for automated depreciation.
The TSE’s decision comes as two major shareholders – Singapore-based Effissimo Capital Management and U.S. hedge fund Farallon Capital Management – call for a surprise shareholder meeting for governance-related issues.
Effissimo Capital has called for an investigation at Toshiba’s annual general meeting held last July, where the company said the voting rights of several shareholders were compromised.
Farallon Capital is asking the company to seek shareholder approval for what the fund said was a change in investment strategy.
Reciting with Makiko Yamazaki; Edited by Jacqueline Wong and Sherry Jacob-Phillips