Makiko Yamazaki

TOKYO, Reuters -Toshiba Corp has established a committee to carry out a review of strategic matters. This could lead to the Japanese conglomerate going private.

Major shareholders have been increasing pressure on the company, which is now 146 years old to think about a private capital buyout. It would provide them with a fast exit that could yield solid returns.

Toshiba released a statement saying that six of the Toshiba OTC:’s directors will join the newly formed committee and “identify” which privatisation deal is most beneficial for diverse stakeholders.

The statement states that relevant information will be available about the review prior to the June annual general assembly.

It also stated that it would suspend temporarily any divestitures of businesses in the plan. These include sales of its elevators and lighting business, as well its talks with Toshiba Tec Corp over the fate the listed subsidiary.

Toshiba met with potential private equity companies last year to review the restructuring plan. After a five month period, Toshiba decided not to accept any offer.

Effissimo Capital Management in Singapore was the largest shareholder. It stated that its top shareholder had made an agreement to sell its 9.9% share to Bain Capital if Effissimo Capital launched a tender.

However, sources close to Toshiba have indicated that it will not be easy for the company to privatize Toshiba because the company has national security technologies like nuclear power.