Toshiba could consider selling entire stake in memory-chip unit
Toshiba [TYO:6502] would consider selling off 100% of its shares in its memory-chip business, the Nihon Keizai Shimbun reported.
The Japanese-language report cited president Satoshi Tsunakawa, who said at a press conference held on 14 February that a sell-off the company's entire stake in the memory-chip business is a possibility. He went on to say that at the present time the company has received various offers for the unit, adding that while considering future investments in the business he would not persist with the idea of maintaining a majority stake.
Toshiba had previously indicated, in connection with the planned sale of the memory business, that it was seeking buyers for a 19.9% stake, the report noted.
Toshiba announced on 14 February a provisional impairment loss related to its US nuclear power business of JPY 712.5bn (USD 6.3bn), and the planned sale of part of the memory-chip business is aimed at covering a shortfall in shareholders’ equity of JPY 150bn, the report said. To avoid falling into insolvency the company must repay debts by the end of March, the report noted. In regard to the possible sale of Westinghouse Electric, Tsunakawa said that he wants to reduce Toshiba’s current 87% stake and is looking for a partner. As to whether Toshiba would be willing to reduce its stake to less than 50%, he said that as of yet no decision has been reached, although he added that all options are possible.
Toshiba has already been designated as a Securities on Alert by the Tokyo Stock Exchange, and if the bourse decides that the company’s internal management system, etc., have not improved by 15 March 2017, the company could be delisted, the report said.
The original articles appeared in print; pg 1, 11.