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Toshiba considering two-way split, to sell U.S. air conditioner business -Nikkei -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO : Pedestrians see a Toshiba Corp logo at an electronics shop in Tokyo. September 14, 2015. REUTERS/Toru Hanai/File Photograph

TOKYO (Reuters) – Japan’s Toshiba Corp will consider splitting in half, instead of three, and will offload its U.S. Air Conditioning business for $870M, according to the company on Friday. This is in order to overcome shareholder opposition.

This would be the latest chapter in Toshiba’s long-running battle with foreign shareholders (many of them activists) and highlight the conglomerate’s struggle to revive itself following a spectacular fall from grace.

According to the Nikkei, Toshiba will be selling its 60% stake at Toshiba Carrier Corporation to Carrier Global (NYSE) Corporation for about 100 billion yen (870 million).

Toshiba spokesperson stated that while it did indeed review its portfolio, it had not yet made a decision. A spokesperson for Toshiba stated that the company will provide more details on Monday at an investor conference.

The Nikkei announced that Toshiba would end its device unit as part of its new strategy. The company had originally planned to seperate into three businesses: one for infrastructure and energy; one for devices; and one that makes flash memory chips.

The newspaper stated that Toshiba would save more money if it splits into two.

($1 = 114.9300 yen)

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