Toshiba: The Japanese newspaper Nikkei made Monday (8) a possible division of Toshiba Corporation in three different publicly traded companies, focused on different areas such as infrastructure, devices and semiconductors. The triple split, in a company created by the merger of several companies, could happen in 2023, according to the magazine.
Also, according to the publication, which cites no sources, the impact measure should be announced next Friday (12), when the company discloses its balance sheet and also a medium-term business plan. The rumor comes in at a delicate moment Toshibas history, with a series of institutional crises culminating in the departure of Chairman Nobuaki Kurumatani in April amid a controversial takeover bid.
Asked by AFP, spokeswoman Tatsuro Oishi confirmed that the company “views the spin-off as one of the options to increase company value”. On the inclusion of the triple division already in the new medium-term business plan, Oishi said that “nothing has been decided yet”.
Making peace with shareholders?
Kurumatani’s resignation reflects a new profile of shareholders, most of them foreigners, who have caved in following the bankruptcy of US nuclear plant subsidiary Westinghouse Electric. These foreign shareholders, called “activists,” conducted an independent investigation that found that: Toshiba have repeatedly attempted to prevent minority shareholders from exercising their voting and voting rights.
The decision to split the Japanese giant’s operations may be an attempt to appease “activist shareholders” by theoretically increasing the combined market value of Toshibas activities. However, some experts disagree. Hidei Yasuda, an analyst with the Ace Research Institute, warns that the conglomerate’s three segments may become more vulnerable individually, in addition to the fact that the gains of one unit cannot cover the losses of the other.