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▼ Toshiba Memory Business Split Approved
- Category:Event
CHIBA (Jiji Press) — Shareholders of struggling electronics and machinery maker Toshiba Corp. on Thursday approved the company’s plan to split off its lucrative flash memory business as a way to remedy its balance sheet.
The approval was given at an extraordinary general shareholders meeting held at the Makuhari Messe convention center in Chiba.
Toshiba is aiming to generate about ¥2 trillion by selling the chip division, which earns about half of its operating profit.
The firm’s financial base has been marred by massive losses at its U.S. nuclear business unit Westinghouse Electric Co., which filed for Chapter 11 bankruptcy protection on Wednesday.
The entity to be split off, called Toshiba Memory Corp., will be established on Saturday. Toshiba plans to pick the buyer of the new chipmaker in May.
At the beginning of the shareholders meeting, Toshiba President Satoshi Tsunakawa said, “I apologize for the trouble and concern” caused by the massive losses from the U.S. nuclear business.
He said Toshiba aims to improve its financial and capital bases through the withdrawal from the overseas nuclear business and the sale of the flash memory division.
Tsunakawa then underscored the company’s determination to quickly improve its earnings and overcome the present crisis by focusing mainly on its social infrastructure business.
Meanwhile, many shareholders voiced criticism of the ailing nuclear business in a question-and-answer session that lasted over three hours.
One of them grilled Toshiba’s management team over its decision to purchase Westinghouse.
In response, Toshiba’s Corporate Senior Executive Vice President Yasuo Naruke sought understanding, saying, “We took appropriate procedures [in information-gathering and decision-making], so there was nothing wrong in the acquisition of Westinghouse.”
Executive Officer Shigenori Shiga, who was head of Toshiba’s nuclear business and stepped down as chairman in February to take responsibility for the huge losses, was absent from the shareholders meeting due to health reasons.
The approval was given at an extraordinary general shareholders meeting held at the Makuhari Messe convention center in Chiba.
Toshiba is aiming to generate about ¥2 trillion by selling the chip division, which earns about half of its operating profit.
The firm’s financial base has been marred by massive losses at its U.S. nuclear business unit Westinghouse Electric Co., which filed for Chapter 11 bankruptcy protection on Wednesday.
The entity to be split off, called Toshiba Memory Corp., will be established on Saturday. Toshiba plans to pick the buyer of the new chipmaker in May.
At the beginning of the shareholders meeting, Toshiba President Satoshi Tsunakawa said, “I apologize for the trouble and concern” caused by the massive losses from the U.S. nuclear business.
He said Toshiba aims to improve its financial and capital bases through the withdrawal from the overseas nuclear business and the sale of the flash memory division.
Tsunakawa then underscored the company’s determination to quickly improve its earnings and overcome the present crisis by focusing mainly on its social infrastructure business.
Meanwhile, many shareholders voiced criticism of the ailing nuclear business in a question-and-answer session that lasted over three hours.
One of them grilled Toshiba’s management team over its decision to purchase Westinghouse.
In response, Toshiba’s Corporate Senior Executive Vice President Yasuo Naruke sought understanding, saying, “We took appropriate procedures [in information-gathering and decision-making], so there was nothing wrong in the acquisition of Westinghouse.”
Executive Officer Shigenori Shiga, who was head of Toshiba’s nuclear business and stepped down as chairman in February to take responsibility for the huge losses, was absent from the shareholders meeting due to health reasons.
- April 4, 2017
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