Toshiba considering total sell off of chip business

Toshiba made this announcement today on a day of turmoil for the Japanese giant.

The company said last week it had received offers of up to $3.6bn for the 20 per cent stake it put out.

Later Tuesday, Toshiba released a presentation containing numerous numbers that would normally go in an official results release including the Yen712.5 billion ($6.3 billion) write-down on the nuclear business. The resulting financial nightmare basically forced HP to split into two different companies.

This statement was scheduled for midday today in Japan - 3am United Kingdom time.

On 14 February, the company published provisional figures showing negative shareholder equity, instead of announcing its final results.

Toshiba said Tuesday its Chairman Shegenori Shiga was stepping down from his post as the company warned it was set to book multibillion-dollar losses in its United States nuclear business.

Speaking at a press conference at the company's Tokyo headquarters, President Satoshi Tsunakawa said that a complete sell-off of its chip business "is a possibility". Toshina shares fell almost 10% yesterday when the company delayed the release of its results, but subsequently picked up slightly after the announcement to end 8% down at ¥229.8. This has been our position from the start. Toshiba also plans to sell shares in some listed subsidiaries.




That's when things went from bad to worse: The company's chairman, Shigenori Shiga, announced he was taking responsibility for the company's woes and would step down Wednesday.

This led the company to the review of its involvement in non-Japanese nuclear projects as well as the sale of its semiconductor business.

Shares in the Japanese conglomerate fell by 8% as it said its third quarter earnings report had "not yet become available" - pointing to accounting issues over its U.S. nuclear firm Westinghouse. The company earlier explained that the labor and material costs for planned USA plant projects will be higher than expected, resulting in a downgrade of its entire nuclear business value.

Shiga, however, will remain as a Toshiba executive until a shareholder meeting scheduled to be held in June 2017.

Tom Samson, NuGen CEO, said the site has proven suitable for three Westinghouse AP1000 reactors, having found "overwhelming" public support.

Rebecca Long-Bailey, the shadow business secretary, said the Government's energy policy was in "chaos". I welcome the continued commitment of the Nugen consortium to the Moorside project.

 

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