TOKYO: Toshiba Corp’s biggest investor Effissimo Capital Management said it has not decided whether to support plans outlined by the Japanese industrial conglomerate to split into three companies.

       Toshiba outlined plans to split into three companies in an attempt to appease activist shareholders calling for a radical overhaul of the Japanese conglomerate after years of scandals.

       Singapore-based Effissimo, which owns a 9.9% stake in Toshiba, issued a statement after a Japanese broadcaster cited an Effissimo-related source as saying the fund wouldn’t support the plans.

       The fund will decide its stance by Toshiba’s extraordinary shareholders meeting next year “following sincere considerations based on analysis of disclosed information as well as through engagement with the company,” the statement said.

       Toshiba declined to comment on the Effissimo statement.

       “We hope to hear sincere opinions from shareholders after we explain thoroughly to seek their understanding about the plans,” it said in a emailed statement.

       Last week, it had been reported that Toshiba was planning to break up into three independent companies by spinning off two core businesses – its energy and infrastructure business as well as its device and storage business.

       After spinning off the two companies, it will continue to own its 40.6% stake in memory chipmaker Kioxia as well as other assets.

       The plan – borne of a five-month strategic review undertaken after a highly damaging corporate governance scandal – is partly aimed at encouraging activist shareholders to exit. Toshiba had said that it believed that splitting the company was the best path to enhancing shareholder value. ― Reuters