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Follow us on FacebookTosh will flog off most of its chip business
@ 2017/02/23Troubled Toshiba will raise $8.8 billion by selling most of its flash memory chip business, seeking to create a buffer for any fresh financial problems.
Tosh has been talking about flogging off part of its successful Flash memory business for a while because that would sort its problems out a bit quicker.
But it decided to abandon that cunning plan to sell just 19.9 percent at the instigation of its main creditor banks which are worried about potential writedowns that may come on top of $6.3 billion hit to its US nuclear unit.
Prioritising its need to raise capital, Toshiba said last week it is now prepared to sell a majority stake or even all its prized chip business.
Toshiba has not decided on the size of the stake to be sold, preferring to focus on the amount that can be raised although it would like to retain a one-third holding that would give it a degree of control over the business, sources in the outfit have leaked.
Tosh has been talking about flogging off part of its successful Flash memory business for a while because that would sort its problems out a bit quicker.
But it decided to abandon that cunning plan to sell just 19.9 percent at the instigation of its main creditor banks which are worried about potential writedowns that may come on top of $6.3 billion hit to its US nuclear unit.
Prioritising its need to raise capital, Toshiba said last week it is now prepared to sell a majority stake or even all its prized chip business.
Toshiba has not decided on the size of the stake to be sold, preferring to focus on the amount that can be raised although it would like to retain a one-third holding that would give it a degree of control over the business, sources in the outfit have leaked.
