Toshiba seeking financial aid for itself from potential investors in to-be-formed chip unit - reports (translated)
Toshiba Corp. [TYO: 6502], which is selecting potential investors for a to-be-formed memory-chip subsidiary, is also seeking financial assistance from those investor candidates for Toshiba itself, according to Japanese media reports.
Toshiba is considering plans to ask the potential investors for the new chip subsidiary, which will be formed in a spin off of Toshiba's semiconductor business, to purchase Toshiba's preferred shares, or to make investment in other businesses of the company, the Yomiuri Shimbun reported, without citing sources.
Purchasers of the preferred shares will have rights to convert the preferred shares into shares of the to-be-formed chip subsidiary, which should be more attractive to investors than direct investment into Toshiba itself, the Kyodo News service reported.
This way, Toshiba is planning to raise about JPY 300bn (USD 2.65bn) by the end of March, the Kyodo News report said, without citing sources.
In a related development, the sale process for a little less than 20% stake in the to-be-formed chip company commenced on 3 February, with Toshiba expecting to generate a profit of at least JPY 200bn from the sale, the Asahi Shimbun reported, without citing sources.
Link to original source (Yomiuri Shimbun)
Link to original source (Kyodo News)