Toshiba To Split Into Three After Pressure From Activists

Toshiba said it would split into three separate companies as part of an effort to improve shareholder value, responding to pressure from activists after years of scandal and mismanagement. From a report: The Tokyo-based company said it will separate core operations into two new publicly traded companies, one for infrastructure services and another for technology devices. The remaining Toshiba business will hold its stakes in memory chip pioneer Kioxia Holdings and Toshiba Tec. The goal is to complete the spinoffs by the second half of fiscal 2023. The company also plans 100 billion yen ($875 million) for shareholder returns over two years. It plans to monetize its stake in Kioxia and "return net proceeds in full to shareholders. Over our more than 140 year history, Toshiba has constantly evolved to stay ahead of the times," Chief Executive Officer Satoshi Tsunakawa said. "Today's announcement is no different. In order to enhance oure competitive positioning, each business now needs greater flexibility to address its own market opportunities and challenges.

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