Technology and electronics group Toshiba will split itself into two companies instead of three. The unit of Toshiba that makes devices, including the chip branch, will be listed separately. The plan to divide the Japanese company into three parts was met with strong criticism from shareholders.
The plan to list the infrastructure branch separately has been scrapped. That division will remain part of Toshiba. The company is selling its majority stake in Toshiba Carrier, which makes air conditioners, to its American partner Carrier Global. That should yield about 100 billion yen (760 million euros).
Toshiba will retain its stake in its former chip branch Kioxia, formerly known as Toshiba Memory. Kioxia may go on an IPO, but it is also said to be negotiating a merger with American industry peer Western Digital. Toshiba has asked Kioxia to go public as soon as possible.
The Japanese Toshiba, which makes air conditioners and laptops, among other things, was pressured by activist shareholders. They are not happy with the ‘conglomerate discount’ on the share. This refers to the tendency of investors to value a diverse group lower than the individual components added together. Toshiba is a Japanese icon and has been around for 140 years. The split should be completed in two years and is expected to cost around 150 million euros.
Toshiba splits itself into two companies instead of three
Source link Toshiba splits itself into two companies instead of three