The logo of Japanese industrial group Toshiba is seen on top of its headquarters in Tokyo on April 7, 2021.

Japan’s Toshiba Corp outlined plans on Friday 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, Toshiba (TOSYY)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, sources with knowledge of the matter have said.

Toshiba said in its statement on Friday it believed that splitting the company was the best path to enhancing shareholder value.

“The decision allows each business to significantly increase its focus and facilitate more agile decision-making and leaner cost structures,” the statement said.

Toshiba hopes to complete the reorganization by the second half of the 2023 financial year.

It also said it intended to “monetize” its shares in Kioxia, returning the net proceeds in full to shareholders as soon as practicable. But it did not elaborate on whether that meant it was still keen on an IPO or would be considering other options.

Some Toshiba investors are not convinced that a breakup would create value, shareholder sources said ahead of a formal announcement of the plan.

“It makes sense to split if the valuation of a highly competitive business is hindered by other businesses,” said Fumio Matsumoto, chief strategist at Okasan Securities.

“But if there isn’t such a business, the breakup just creates three lackluster midsize companies.”

The once-storied 146-year old conglomerate has lurched from crisis to crisis since an accounting scandal in 2015. Two years later, it secured a $5.4 billion cash injection from 30-plus overseas investors that helped avoid a delisting but brought in activist shareholders including Elliott Management, Third Point and Farallon.

Tension between Toshiba management and overseas shareholders has dominated headlines since then and in June, an explosive shareholder-commissioned investigation concluded that Toshiba colluded with Japan’s trade ministry to block investors from gaining influence at last year’s shareholders meeting.

Earlier on Friday, Toshiba released a separately commissioned report that found executives including its former CEO had behaved unethically but not illegally.

It concluded that Toshiba was overly dependent on the trade ministry, adding that problems were also caused by its “excessive cautiousness towards foreign investment funds” and “its lack of willingness to develop a sound relationship with them.”

Shares in Toshiba finished 1% lower after the governance report. Details of the strategic review were announced after the market close.