Toshiba to split into three firms

Toshiba to split into three firms

TOKYO (AFP/APP): 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 board approved a plan that will spin two companies off from the rest of Toshiba’s operations within two years, with one focused on infrastructure and the second on devices, and both eventually being listed. The firm said the decision would allow each business to “significantly increase its focus and facilitate more agile decision-making and leaner cost structures”.
That would leave them “much better positioned to capitalise on their distinct market positions, priorities and growth drivers to deliver sustainable profitable growth and enhanced shareholder value”, it added.
The decision, reported in Japanese media earlier this week, followed calls by activist investors who wanted “moves to shake the company up and get investors to reevaluate it and hopefully get a higher share price”, said LightStream Research analyst Mio Kato, who publishes on Smartkarma.
The decision caps a period of tumult at the firm, once a symbol of Japan’s advanced technological and economic power.

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