Toshiba splits into three. The Japanese electronics giant has been navigating bad waters for some time and today announced a demerger plan that aims to improve profitability, but also to silence the shareholders who have long contested the governance of the group.
The move is part of a medium-term plan it plans by 2023 the unbundling of the infrastructure and electronic equipment divisions from the central body of the company, which will continue to deal with the other assets and the subsidiary Kioxia (manufacturer of computer memories).
The group is currently made up of seven divisions and its activities range from infrastructures to transport systems, from water supplies to sewage systems, passing through thermal and nuclear power plants, semiconductors and electronic devices.
To become effective, the reorganization must be approved by the general meeting. The management thus hopes to respond to the transparency requests from activist members, which entered the capital following a capital increase in 2017.
But the battle seems far from over: nine investors representing 30% of the capital have already told the Financial Times who consider the tripartition an unsatisfactory solution.
The official announcement of the new plan – writes the Nikkei today - came after Toshiba released an internal report in which it admits that what happened during last year's meeting - when some executives worked with the Japanese economy ministry to put pressure on shareholders - was against company ethics, even if not the law.
For The bills, in the first half of the fiscal year (April-September) Toshiba recorded a net profit of 59,7 billion yen (456,7 million euros), up from the same period last year, when profits stopped at 3,4 billion yen (26 million euros). Revenues, on the other hand, reached 1.540 billion yen (11,78 billion euros).
A few days ago too General Electric had announced a split in three.
