The Japanese company Toshiba confirmed that it will split into three distinct companies, which will focus on infrastructure, semiconductor and device manufacturing, respectively. This internal reorganization is aimed at increase growth and profitability, as well as to deal with a scandal that took place a few years ago, after which shareholders began to ask for a clearer and more transparent strategy.
Toshiba splits into three distinct companies
It is not clear when the spin-off could take place, but at the moment it is thought that it could take place in 2023. The decision comes in the face of a recent scandal that ultimately led to the exit of the chairman of the board and a contested buy-out offer. out by the fund Cv Capital Partners, then got stuck. Splitting into three separate companies appears to be the best option at the moment.
“We are working on a medium-term strategic plan to improve our business value; separate ours
activity is one of the options under consideration, but nothing is decided yet, ”said a spokesperson for Toshiba:“ If we arrive at a decision that needs to be communicated, we will do it quickly ”.
Under the plan that is being evaluated by the Board, Toshiba’s power plants and other infrastructures will be managed by one company, while the devices would be up to a second. Finally, the third company should be entirely dedicated to semiconductors and would merge with the already established one Kioxia Holdings, of which Toshiba owns a share of approximately 40%.
Toshiba’s financial difficulties have already been known since 2015, but this year there is also a serious governance crisis, as the CEO Nobuaki Kurumatani he left in April due to various frictions with shareholders, while in June it was the turn of the chairman of the board Osamu Nagayama to leave the company.