Japan’s Toshiba to split business into three companies: report

toshiba 1 - Japan's Toshiba to split business into three companies: report

TOKYO: Toshiba plans to split into three companies as early as 2023, aiming to make the performance and growth strategy of each sector clearer, the Nikkei business daily reported.

The Japanese firm confirmed to AFP that the option of splitting its business up was under consideration but said nothing had been decided yet.

The Nikkei daily reported, without citing its sources, that Toshiba plans to split into three firms focused on infrastructure, devices and semiconductor memory.

All three companies are expected to be listed at some point, and the move is likely to be announced in Toshiba’s mid-term business plan being released on Friday, the Nikkei said.

“We are drafting a mid-term business plan to enhance our corporate value, and dividing our businesses is one of the options, but there is nothing officially decided at this point,” Toshiba spokesman Tatsuro Oishi told AFP.

“We will swiftly announce if we decide anything that should be disclosed,” he said.

In April, Toshiba said it was considering a buyout offer from British private equity fund CVC Capital Partners, with reports suggesting the deal could be worth about $20 billion.

The proposal would have taken Toshiba private, with delisting intended to produce faster decision-making by Toshiba’s management, which has clashed with shareholders recently.

The decision to split the firm up would be the end of an era for Japanese electronics conglomerates with several different businesses complementing each other under one company, the Nikkei said.

The daily said the business model was viewed as inefficient.

Toshiba stock was up 2.27 percent at 5,088 yen at the open in Tokyo, more than the market as a whole.

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