Confirming preliminary information, Toshiba today announced its intention to split into three separate companies. This step is intended to increase its value in the eyes of shareholders. It was the culmination of nearly five months of the strategic committee of Toshiba’s board of directors. The relevant press release notes that this is the first time that the chosen split scheme has been used in such a large Japanese company.
The first company, so far called Infrastructure Service (to be announced later), will consist of the current divisions Energy Systems & Solutions, Infrastructure Systems & Solutions, Building Solutions, Digital Solutions and Battery;
The second company, so far called Device, will include the Electronic Devices & Storage Solutions business line.
Finally, the third company, which will continue to be called Toshiba, will retain stakes in Kioxia Holdings Corporation and Toshiba Tec Corporation.
The unbundling is said to allow each business to focus on its own line of business, which should lead to “more flexible decision making and a more cost-effective cost structure.” This is expected to open up much better opportunities to capitalize on market position, prioritize and drive growth.
The reorganization is expected to be completed in the second half of fiscal 2023, subject to the completion of the necessary procedures, including approval by the general meeting of Toshiba shareholders and the fulfillment of all due diligence requirements by the relevant authorities.
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