Japanese company fighting back after accounting scandal and huge loss on nuclear division
Toshiba revises estimated multibillion-yen loss from chip unit sale
Toshiba forecast an annual net loss of ¥110 billion (Dh3.55bn) on the tax impact of selling its memory chip division to a group led by Bain Capital.
The Tokyo-based company revised its forecast from an earlier estimate of ¥230bn in net income, it said. The company left its operating profit and sales forecasts for year ending March unchanged. Toshiba said the sale will be recognised for tax purposes as a non-qualified split, after it separated its memory business to secure the injection of capital from the Bain consortium.
Toshiba’s shareholders are expected to approve the ¥2 trillion sale of the memory chip business at a general meeting on Tuesday, helping the company avert a capital deficit that could lead to its delisting. The Bain consortium includes major technology players Apple, Dell, SK Hynix and Japan’s Hoya, while Toshiba itself will maintain a stake. The proceeds would result in a ¥1.08tn improvement in its shareholders’ equity, the company said on Monday.
The Japanese company is clawing its way back after an accounting scandal in 2015 that was followed by a multibillion-dollar loss in its nuclear operations in the US. The Tokyo Stock Exchange this month removed Toshiba from its watchlist for delisting citing better internal controls and efforts to improve corporate governance.