Toshiba’s board of directors has approved a plan to split the venerable Japanese corporation into three companies, the company revealed Friday, following shareholder opposition and a controversial takeover bid.
The announcement confirms reports earlier in the week that said management was under pressure from shareholders to maximize the firm’s value by dividing its businesses.
The proposal aims to spin two companies off from the rest of Toshiba’s operations, one focused on infrastructure and the second on devices.
The move is expected to take two years, with the goal of listing both new companies, Toshiba said.
“The separation allows each business to significantly increase its focus and facilitate more agile decision-making and leaner cost structures,” the company said in a statement.
“As such, both companies will be much better positioned to capitalize on their distinct market positions, priorities, and growth drivers to deliver sustainable profitable growth and enhanced shareholder value.”