Toshiba to split business into three: report

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Toshiba plans to split into three companies as early as 2023, a report said Tuesday, after a series of crises at the firm including the ouster of the board's chairman and a contentious buyout offer.

The Nikkei business daily said the three units would focus on infrastructure, devices and semiconductor memory and are expected to be listed, possibly within two years.

"We are drafting a mid-term business plan to enhance our corporate value, and dividing our businesses is one of the options, but there is nothing officially decided at this point," Toshiba spokesman Tatsuro Oishi told AFP.The decision, if confirmed, would cap a period of enormous upheaval for the firm, once a symbol of Japan's advanced technology and economic power.

The investigation's report detailed how the firm had pursued an intervention from Japan's Ministry of Economy, Trade and Industry to help sway a board vote. Other offers emerged subsequently, and Kurumatani resigned in April, though he insisted it was not related to the buyout controversy.The decision to split Toshiba's businesses"is a consequence of listening to activist shareholders", said Hideki Yasuda, an analyst with Ace Research Institute.

But for others such as chemical giant DuPont, which separated into three firms under shareholder pressure, overall market capitalisation is now lower, the daily pointed out.

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