Toshiba considering two-way split, to sell U.S. air conditioner business
Japan’s Toshiba Corp is considering splitting in half instead of three and will offload its U.S. air conditioning business for $870 million, the Nikkei said on Friday, in an attempt to overcome shareholder opposition to its turnaround plan.
The change would mark the latest twist in Toshiba’s drawn out battle with foreign shareholders, many of them activists and hedge funds, and highlights the once-mighty conglomerate’s fight to revive itself after a dramatic fall from grace.
Toshiba (6502.T) will sell its 60% stake in Toshiba Carrier to U.S. counterpart Carrier Global Corporation for around 100 billion yen ($870 million), the Nikkei said, adding that the two companies have reached an agreement.
A Toshiba spokesperson said it was true that it was reviewing its portfolio but that nothing had been decided. The company would give further details at an investor day on Monday, the spokesperson said.
Under its new plan, Toshiba will break off its device business, including the semiconductor unit, the Nikkei said. Previously it had planned to split into three companies: one for energy and infrastructure, one for devices and one for flash memory chips.
By splitting into two, Toshiba will save more money that it can return to shareholders, the newspaper said.
