Toshiba – Who Should Stay and Who Should Go

Toshiba – A Tale of Two Investigative Reports

Toshiba Corp (6502 JP) Chapter 1: CEO Out, Activists up the Game

Toshiba Corp (6502 JP) Chapter 3: Activists up the Ante, with ESG and Hints of a New Twist

Toshiba Corp (6502 JP) – And so It Begins

Gravity Works As WeWork Doesn't; Now Plan B

Global Special Situations & Strategy, SR Services Ltd

David Lepper

Global Special Situations & Strategy

SR Services Ltd

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Equity Bottom-Up

<ul>
<li>Activists’ stance on ESG justified In our  <a href="https://www.smartkarma.com/insights/toshiba-corp-6502-jp-chapter-2-company-engages-stakeholders" target="_blank" data-smartkarma-citation="insights:50585" rel="noopener">Toshiba Corp (6502 JP) Chapter 2: Company Engages Stakeholders</a> note, we addressed what was likely to happen next in this saga. In particular, we stated, “ESG” was firmly on the agenda. Specifically, we sided with 3D Investment Partners stating that financial risk and reward issues would likely take a back seat.</li>
<li>
Time is of the essence: The findings of the report highlight that Toshiba needs to act immediately to rectify the serious matters identified. Whilst as of 13th June 2021 two members have withdrawn their 2021 nominations and several resignations have been filed, in our view the full management and board resignation (albeit phased) is required. In addition, private equity bids need to be approved.</li>
<li>We examine the next likely steps, likely ESG rating trends, various corporate and share price risks. We specifically look at what are the required measures to alleviate pressure now likely to be brought by ESG compliant investors for the company. Our conclusion leads us to reason that after a period of share price consolidation the share price is set to move higher.</li>
</ul>


Activists’ stance on ESG justified In our  Toshiba Corp (6502 JP) Chapter 2: Company Engages Stakeholders note, we addressed what was likely to happen next in this saga. In particular, we stated, “ESG” was firmly on the agenda. Specifically, we sided with 3D Investment Partners stating that financial risk and reward issues would likely take a back seat.

Time is of the essence: The findings of the report highlight that Toshiba needs to act immediately to rectify the serious matters identified. Whilst as of 13th June 2021 two members have withdrawn their 2021 nominations and several resignations have been filed, in our view the full management and board resignation (albeit phased) is required. In addition, private equity bids need to be approved.
We examine the next likely steps, likely ESG rating trends, various corporate and share price risks. We specifically look at what are the required measures to alleviate pressure now likely to be brought by ESG compliant investors for the company. Our conclusion leads us to reason that after a period of share price consolidation the share price is set to move higher.


Toshiba Corp (6502 JP) Chapter 4: Dynamics in Activist’s Favour, Due to Investigation Report