Toshiba plans to calve off its Memory business from 31 March through a company split. Toshiba is reviewing how to conduct the split, with a view to an injection of third-party capital, its purpose for the move. The company is looking for an injection to offset, or partially offset, a potential goodwill write-down of “several billion US dollars” related to Westinghouse’s acquisition of CB&I Stone & Webster. Toshiba sold CB&I Stone & Webster in December but said at the time that cost overruns would be higher than initially planned for.
The Memory operations include the SSD business but not Toshiba’s image sensor unit. An extraordinary shareholder meeting will take place at the end of March to approve the division. The full list of assets to be moved is still under consideration.
Toshiba said splitting off the operations will give the business greater flexibility for rapid decision-making and boost its financial options. This will lead to further growth for the operations and a maximisation of Toshiba’s corporate value.
The split is not expected to impact on Toshiba results.
