Japan's Toshiba corporation says that it will now split up into two companies instead of three, and it also revealed an eye-catching boost to planned shareholder returns to appease its angry investors.

Before, Toshiba had made the decision in November to split into three companies. According to plans, the move was expected to take two years and stipulated spinning two companies off from the rest of Toshiba's operations.

One company was to focus on Toshiba’s energy and infrastructure while its hard disk drives and power semiconductor businesses would form the backbone of another. A third company would have managed its stake in flash-memory chip company Kioxia Holdings and other assets.

In accordance with this new restructuring, Toshiba will split off its device business, including its power chip unit. It also intends to increase shareholder returns to $2.6 billion over the next two years.

The new restructuring plan was simpler, would save costs, and would make it easier for alliances with strategic partners to be pursued, according to Toshiba.

"We have not changed the plan to avoid confrontation with shareholders," CEO Satoshi Tsunakawa told a briefing. The revised restructuring, Tsunakawa said, would be voted on by shareholders at a meeting in March.