Exclusive: Toshiba set to OK $5 billion injection Monday to stay listed - sources | Reuters

TOKYO (Reuters) - Toshiba Corp will decide on Monday to raise some $5 billion from overseas investors, allowing the troubled conglomerate to remain a publicly traded company even if the sale of a key business is delayed, two people with direct knowledge of the process said. A logo of Toshiba Corp is seen on a printed circuit board in this photo illustration taken in Tokyo July 31, 2012.

Reuters November 18, 2017 22:15:11 IST
Exclusive: Toshiba set to OK $5 billion injection Monday to stay listed - sources | Reuters

Exclusive Toshiba set to OK 5 billion injection Monday to stay listed  sources  ReutersTOKYO (Reuters) - Toshiba Corp will decide on Monday to raise some $5 billion from overseas investors, allowing the troubled conglomerate to remain a publicly traded company even if the sale of a key business is delayed, two people with direct knowledge of the process said. A logo of Toshiba Corp is seen on a printed circuit board in this photo illustration taken in Tokyo July 31, 2012. REUTERS/Yuriko Nakao/FilesToshiba, reeling from the bankruptcy of its U.S. nuclear unit Westinghouse Co in the wake of an accounting scandal, needs to raise 750 billion yen ($6.7 billion) by the end of March to avoid being kicked off the Tokyo Stock Exchange. The laptops-to-nuclear-reactors company has agreed to sell its prized NAND semiconductor unit for $18 billion, and is planning to sell its TV business and reportedly looking to hive off its personal-computer unit to raise cash. But with the March deadline looming to avoid delisting and the chip sale threatened by antitrust concerns from China and elsewhere, Toshiba’s board will on Monday approve a plan to raise 600 billion yen ($5.3 billion) by offering shares to a group of overseas investors, the sources said. In addition, the sources told Reuters, Toshiba will agree to take upfront losses that will allow tax write-offs sufficient to boost its assets back above liabilities for the first time in two years - allowing the firm to remain listed. Toshiba declined to comment on the plan. To plug the huge hole in its balance sheet, Toshiba agreed in late September to sell its Toshiba Memory unit to a group led by Bain Capital for $18 billion. But regulatory reviews globally threaten its ability to close the sale by the March end of the business year, which would put the company in negative net worth for a second year in a row, imperilling its TSE listing. Without any gains from the chip unit sale, Toshiba forecasts it would post negative net worth of 750 billion yen at the end of March. The company could use the proceeds from a share allotment to pay all at once the $5.8 billion in parent-company guarantees on Westinghouse’s much-delayed nuclear projects in the United States, one source said. The current plan is to guarantee payments to two U.S. power utilities over six years. Paying them off in full now would allow Toshiba to book losses that would reduce its tax burden enough to ensure it has the cash to remain listed, the source said. ($1 = 112.6100 yen)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

Apple will enable storage of IDs like drivers licenses on iPhones
Business

Apple will enable storage of IDs like drivers licenses on iPhones

By Stephen Nellis (Reuters) -Apple Inc on Monday said it will offer the ability to store state-issued identification cards digitally on iPhones and that it is working with the U.S. Transportation Security Administration to accept the digital IDs at airports, one of several updates to the software that runs on its devices. It also showed updates to its FaceTime video chat app, adding the ability to schedule calls with multiple attendees and making the software compatible with Android and Windows devices.

Airline bosses call on UK and U.S. to lift trans-Atlantic travel restrictions
Business

Airline bosses call on UK and U.S. to lift trans-Atlantic travel restrictions

LONDON (Reuters) - The bosses of all airlines flying passenger services between Britain and the United States called on Monday for the countries' governments to relax COVID-19 restrictions to reopen travel routes between the two countries. After more than a year of restrictions, the CEOs of American Airlines, IAG unit British Airways, Delta Air Lines, United Airlines and JetBlue Airways Corp said high vaccination rates in both countries meant travel could restart safely. The push for reopening trans-Atlantic routes on Monday comes ahead of meetings between U.S.

EU patience wearing thin with UK on N.Ireland, weighing options
Business

EU patience wearing thin with UK on N.Ireland, weighing options

BRUSSELS (Reuters) - The European Union's patience towards Britain over Brexit arrangements in Northern Ireland is wearing thin and the bloc will consider its options should Britain continue its "confrontational path", an EU official said on Monday.