Toshiba warns sale of chip business to Bain will push it into ¥110bn loss
Tokyo — Toshiba forecast an annual net loss of ¥110bn ($968m) on the tax impact of selling its memory chip division to a group led by Bain Capital. The Tokyo-based company revised its forecast from an earlier estimate of ¥230bn in net income, according to a statement. The company left its operating profit and sales forecasts for year ending March unchanged. Toshiba’s shares closed 1.2% lower at ¥331 on Monday, after earlier falling as much as 3.6%. Toshiba said the sale would be recognised for tax purposes as a nonqualified split, after it separated its memory business to secure the injection of capital from the Bain consortium. Toshiba’s shareholders are expected to approve the ¥2-trillion sale of the memory chip business at a general meeting on Tuesday, helping the company avert a capital deficit that could lead to its delisting. The Bain consortium includes major technology players Apple, Dell, SK Hynix and Japan’s Hoya, while Toshiba itself will maintain a stake. The proceeds wo...
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