Toshiba unveils it’s plan to split into two companies
Japan's Toshiba on Monday announced plans to split into two companies, to reconsider a controversial three-company split proposal after a turbulent period for the storied industrial conglomerate.
The group said it plans to close the hardware sector, including the semiconductor sector, to speed up the decision-making process and improve engagement performance.
Shareholders arguing with management about the best way forward for the struggling company still need to approve the proposal in an expected vote in March. The split from the original plan faced fierce resistance from some major investors.
The company also said it would transfer its stake in the air conditioning business to Toshiba Carrier and try to sell elevators and lighting fixtures.
He said that business expansion has struggled with previous slowdowns in decision-making and discounting, and that flow control processes will allow investors to choose the part that matters to them.
These include higher than expected costs and an extensive listing process for two new assets. Instead, the company said, the split could "significantly reduce the cost of the split, ensure the financial strength of each company, and significantly reduce the uncertainty of the split."
The company has already agreed to sell the Toshiba Carrier to the American Carrier Corporation for about 100 billion yen.
The group currently owns a 60% stake in the air conditioning company and will hold only 5% when the sale is completed later this year. The company said it hopes to reach agreements to offload elevators and lighting fixtures within the next two months.