The Strategist

Toshiba to split into two companies instead of three



02/08/2022 - 07:04



Japanese electronics giant Toshiba Corporation will split into two companies instead of three as previously planned, the company said.



Seika via flickr
Seika via flickr
"Toshiba announced its intention to split the company into two separate companies instead of three as previously announced," the release said. In November, Toshiba had announced its intention to split into three parts, Infrastructure Service Co., Device Co. and Toshiba, which would have held a stake in Kioxia Holdings Corporation (KHC) and Toshiba Tec Corporation.

Now the company has decided that the Infrastructure Service Co. will hold a stake in KHC. It will also be responsible for infrastructure systems and solutions, digital solutions, and batteries. Device Co. will develop power semiconductors, electronic devices and storage, high-capacity hard drives and analog integrated circuits.

The separation is expected to be completed in the second half of fiscal 2023. The corporation expects the fiscal year to run from April through March. Toshiba's board of directors determined that the split into two companies would be the fastest and most effective way to ensure sustained earnings growth and increase shareholder value.

In addition, as part of the strategic reorganization process, Toshiba will sell its stake in their joint venture, Toshiba Carrier Corporation, to Carrier for about 100 billion yen (about $867 million). The company is also thinking of selling Toshiba Elevator and Building Systems Corporation and Toshiba Lighting & Technology Corporation.

source: asia.nikkei.com




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