Toshiba looks at spinning off, listing chip business to fund restructuring

The logo of Toshiba Corp is seen at its headquarters in Tokyo, Japan, November 6, 2015. REUTERS/Yuya Shino

Toshiba Corp said on Friday it was considering splitting off part of its chip business, with listing it an option, in a move that would help it raise capital needed to fund restructuring following a $1.3 billion accounting scandal.

Toshiba is in urgent need of restructuring after profit-padding revealed a number unprofitable businesses. It agreed in October to sell its image sensor business to Sony Corp .

The accounting scandal rendered Toshiba on the Tokyo Stock Exchange’s so-called watch list, meaning the conglomerate is almost unable to raise funds by selling shares or bonds, to bolster capital which could be depleted by restructuring.

“We would consider selling every asset that is possible to sell,” Chief Executive Masashi Muromachi said at an analyst briefing.

He also said NAND flash memory chips comprised a core part of Toshiba‘s business and would not be sold.

That effectively leaves system LSI and discrete chips as options to be split off.

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(Reporting by Makiko Yamazaki; Writing by Edwina Gibbs; Editing by Muralikumar Anantharaman and Christopher Cushing)

Reuters

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

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