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November 30, 2015

Toshiba looks to sell stake in semiconductor business

News: Several of the company's businesses have failed to post profits.

By CBR Staff Writer

Toshiba is planning to divest a minority interest in its semiconductor business to help raise funds for restructuring after a $1.3bn accounting scandal.

Last month, Toshiba agreed to sell its imaging sensor business to Sony. The deal includes Toshiba’s semiconductor fabrication facilities, equipment and related assets in Oita Prefecture, Japan.

Under the semiconductor business division, Toshiba sells memory chips to Apple and other smartphone manufacturers.

Toshiba CEO Masashi Muromachi said that the company would consider a stock market listing or a deal with another company but would retain control of the operation.

Muromachi was quoted by The Wall Street Journal as saying, "It is a core business for us, so we won’t completely detach the business from the group," he said, adding that a complete sale was ruled out.

Earlier this month, Toshiba sued five former executives for damages over their alleged roles in the accounting scandal.

Several of Toshiba’s businesses have failed to post profits, forcing the Tokyo Stock Exchange to place the company on a watch list.

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The move from the Tokyo Stock Exchange makes it difficult for the company to raise funds by selling shares or bonds.

In addition to the semiconductor business, Toshiba is also considering to sell stake in Westinghouse, its US nuclear unit.

 

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