By Global Network Technology Reporter Chen Jian
According to Bloomberg News, Toshiba has announced its plan to issue new shares in order to raise 600 billion yen. The company also revealed that it is looking to sell its Westinghouse assets as a strategy to avoid delisting from the Tokyo Stock Exchange. Westinghouse Electric, a subsidiary of Toshiba specializing in nuclear electronics, is currently under bankruptcy protection and has been struggling with significant financial losses.
The sale of Westinghouse's shares and rights is expected to help Toshiba reduce costs significantly and redirect funds toward emerging business ventures. Westinghouse has accumulated several billion dollars in losses, despite securing contracts for two nuclear power projects in the U.S. However, the project faced major delays and cost overruns due to initial underestimations, making Toshiba’s decision to step back from Westinghouse somewhat predictable.
Toshiba has been facing mounting pressure to restructure its operations. The company has been dealing with accounting scandals and the financial burden of its nuclear division. As part of its recovery efforts, Toshiba planned to sell its chip business to generate much-needed capital. However, the deal may not be finalized by March next year, as it requires regulatory approvals across multiple countries.
After an extended auction process, Toshiba recently agreed to sell its memory chip unit to a consortium led by Bain Capital, aiming to fill the financial gap caused by its troubled nuclear business. However, complications arose when Western Digital, which had previously partnered with Toshiba through a joint venture with SanDisk, filed an arbitration claim. Western Digital argues that it has certain legal rights that must be respected before the sale can proceed. The company has stated that it will not easily relinquish these powers, as they are crucial to protecting its interests in the chip joint venture. Despite this, there are reports suggesting that an agreement might be reached by the end of the month.
Meanwhile, Toshiba is exploring other options. Private equity firms such as Blackstone Group and Apollo Global Management have shown interest in acquiring Westinghouse Electric, with other companies also considering bids.
In addition, Toshiba plans to raise $5.3 billion through new share offerings. The company expects its net assets to reach 750 billion yen by next year. To support this effort, overseas investors including Singapore-based Effissimo Capital Management are reportedly interested in subscribing to the new shares. With these moves, Toshiba aims to stabilize its financial position and focus on future growth opportunities.
Prototype Pcb Fabrication,Custom Printed Circuit Board,Multilayer PCB board,flexible pcb prototype
Dongguan Jinglin Communication Technology Co., Ltd. , https://www.jlpcba.com