Toshiba is considering splitting into three companies that will deal separately with infrastructure, devices and memory chips. This was announced today by a representative of the company.
The split is supposed to help solve the so-called conglomerate discount problem. The fact is that investors tend to value a diversified group of enterprises at a lower amount than that obtained by summing the value of these enterprises separately.
In addition, the move will ease pressure from activist shareholders who now make up a significant portion of the Japanese company’s sprawling investor base.
According to the spokesman, the plan calls for Toshiba to split into three companies over the next few years, each of which will be listed on the stock exchange separately.
The company said in a statement that this is only one strategic option under consideration. No final decision has been made yet.