Tokyo – (dpa) – Japanese electronics giant Toshiba Corp. announced Friday that it will split into three separate companies, in an effort to enhance added value for shareholders.
The Japanese company’s decision comes in response to shareholder pressure after years of scandal and mismanagement.
Toshiba said in a statement reported by Bloomberg News Agency today, Friday, that it will divide its main operations between two new publicly traded companies, one specialized in infrastructure services and the other in technology devices.
The company added that its remaining operations will retain stakes in the two new entities, in order to complete the sale of shares in the parent company by the second half of the 2023 fiscal year.
The company is also targeting a profit of 100 billion yen ($875 million) to shareholders within two years.
Toshiba has been plagued by controversies dating back at least to 2015, when the company was forced to pay the largest fine in the country’s history, for being convicted of falsifying financial statements.
The dispute was followed by a failed attempt to enter the nuclear trading market, forcing the Japanese company to write off assets worth $6.3 billion and sell its memory chip maker Kioxia.
Shareholders, led by Ifisimo Capital Management PT, began to move as Toshiba’s losses mounted, they made a change to the company’s board of directors, including a decision to appoint Ifisimo co-founder Yuichiro Imai as Toshiba’s new director.