Toshiba To Split Into 3 Companies: All You Need To Know
Toshiba Corp (OTC: TOSYY) announced its intention to separate into three standalone companies.
Infrastructure Service Co will consist of Toshiba’s Energy Systems & Solutions, Infrastructure Systems & Solutions, Building Solutions, Digital Solutions, and Battery businesses.
Device Co will comprise Toshiba’s Electronic Devices & Storage Solutions business.
Toshiba will hold its shares in Kioxia Holdings Corporation (KHC) and Toshiba Tec Corporation.
The separation will create two distinctive companies with unique business characteristics leading their respective industries to realize carbon neutrality and infrastructure resilience (Infrastructure Service Co) and support the evolution of social and IT infrastructure (Device Co).
It will help each business significantly increase its focus and facilitate more agile decision-making and leaner cost structures.
Toshiba aims to monetize shares in Kioxia while maximizing shareholder value and returning the net proceeds in total to shareholders.
Toshiba will utilize the tax-qualified spin-off structure via the recent tax reform legislation in Japan.
Toshiba’s Board has unanimously approved this separation plan.
Price Action: TOSYY shares closed higher by 0.84% at $21.68 on Thursday.
See more from Benzinga
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
