Japan’s Toshiba to split into three firms

TOKYO:

Storied Japanese conglomerate Toshiba will split into three companies, it said Friday, following a campaign by investors to boost the firm’s shares after a period of enormous upheaval. The move is the first spin-off by a Japanese firm of Toshiba’s size and analysts said it could be a test case for other domestic conglomerates. The plan approved by the board will spin two companies off from the rest of Toshiba’s operations within two years -- one focused on infrastructure and the second on devices -- with both eventually being listed. “It is an extremely big change, but there is a chance for each business to achieve growth,” CEO Satoshi Tsunakawa told reporters. “Toshiba has changed its form and evolved throughout its long history of over 140 years,” he added. “We have reached a conclusion that this strategic realignment is the best option.” The plan must still be approved by shareholders, some of whom reportedly would have preferred a buyout. 

Published in The Express Tribune, November 13^th, 2021.

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