Toshiba share sale to dodge delisting
Tokyo — Toshiba has said it would raise ¥600bn ($5.3bn) from a sale of new shares, a key step that would allow the troubled conglomerate to remain a publicly traded company even if the sale of its chip unit is delayed.
Toshiba’s board met on Sunday and approved a plan to raise ¥600bn by offering new shares to 60 overseas investors who have signed up to the deal, the company said.
Toshiba needs to raise ¥750bn by the end of March 2018 to plug a balance-sheet hole left by its bankrupt US nuclear power business, or it will be delisted from the Tokyo Stock Exchange.
The company said it would use proceeds from the share sale to pay off liabilities related to the bankrupt unit and book losses that will allow tax write-offs sufficient to boost its assets back above liabilities.
The share sale, together with the tax write-offs, will boost its balance sheet by at least ¥840bn in total, Toshiba said.
It will issue the new shares at ¥262.8 per share, a discount to Friday’s closing price of ¥292. Payments from investors for the new shares will be completed on December 5.