Toshiba mulls JPY 600 bln offering - report

Friday 10 November 2017 | 15:54 CET | News
Toshiba may launch a new share offering of JPY 600 billion if the sale of its memory business to Bain Capital for JPY 2 trillion falls through or delays too much, the Wall Street Journal reported, citing sources familiar with the matter. Japanese public broadcaster NHK first reported the possible fundraising. Toshiba said in a statement that it was looking at options to bolster its capital but no final decisions have been made. 

Toshiba’s shareholder equity stood at minus JPY 619.8 billion at the end of September. If the figure remains negative by the end of Toshiba’s fiscal year, it would be the company’s second straight fiscal year with negative shareholder equity, which would lead to the company’s delisting from the Tokyo Stock Exchange under exchange rules. The deal with Bain would solve the problem but market watchers are doubtful the sale will be able to close by the end of the fiscal year, at end March. Judging that a delay in the chip deal is probably unavoidable, Toshiba is looking at issuing new shares to business partners and institutional investors, the person familiar with the plans said. 

Toshiba this week announced plans to accelerate investment in memory production capacity.

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