US NUCLEAR BUSINESS WRITEDOW
Toshiba to sell 20% of its chip business
Toshiba’s board will meet on Friday to approve plans to make its chip business a separate company
Tokyo — Toshiba’s board will meet on Friday to approve plans to make its chip business a separate company and hopes to raise more than ¥200bn ($1.8bn) by selling a 20% stake in it, a person with direct knowledge of the matter said. The sale is part of the conglomerate’s efforts to avoid being crippled by a coming multibillion-dollar writedown for its US nuclear business, although it would not completely offset a charge that other sources have said may exceed $4.4bn. Some domestic media have said the writedown could be as much as $6bn. Toshiba declined to comment on plans for its chip business, but said earlier on Tuesday that it would unveil the extent of the writedown on February 14, when it reports third-quarter results. "We will explain the reasons why this occurred to the nuclear business and offer measures to prevent a repeat of the incident," the company said. Toshiba is rushing to raise funds by the end of the financial year in March as a massive writedown could wipe out shar...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.