In November 2021, Toshiba announced big plans to divide its company to focus on three key areas. Now, Toshiba has revised its decision and plans to split into just two companies instead, APA-Economics reports citing Tech Wire Asia.
The group said it plans to spin off its device segment, including its semiconductor business, in a bid to speed up decision-making and boost stock performance.
As the original spin-off faced stiff opposition from investors, shareholders will need to approve the proposal in a vote expected in March this year. The firm also said it will unload its stake in air-conditioning business Toshiba Carrier and seek to sell its elevator and lighting units.
“The refined strategic reorganization plan creates two distinctive companies that are well-positioned to take advantage of their unique strengths and business cycles. We will be able to deliver these benefits while providing a clearer path to completion, reducing the associated costs, maintaining tax-free status and keeping to our stated timeframe of completing the spin-off in the second half of FY2023,” said president and CEO Satoshi Tsunakawa.
He said the sprawling business “struggled with the conglomerate discount and slowness in decision-making” in the past, and streamlining operations would allow investors to choose the portion of the business that interested them.
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