Japan-based technology company Toshiba has announced the details of the split to create a more focused structure.
The company’s announcement said it would be split into three parts by March 2024.
Toshiba has seen a number of crises over the past 7 years, including the dismissal of its chairman and a report earlier this year of undue pressure on foreign shareholders.
It was highlighted that one of the three entities into which the company will be split will focus on infrastructure services and the other on electronic devices such as power semiconductors.
The third part, keeping the Toshiba name, is the flash memory company Kioxia Holdings Corp. and its participation in other assets.
It was underlined that the decision may not be entirely satisfactory to foreign shareholders, who are likely to call for a more aggressive approach to Toshiba’s stake in terms of the spin-off and sale to a private equity firm.
“DIVISIONAL IN THREE AND CONVERSION MANAGEMENT IS A GOOD DECISION”
“It is a good decision to rebuild the administration by dividing it into three parts,” said strategist Masayuki Kubota.
“The decision-making process is completely different between infrastructure and semiconductor companies,” said Kubota.