Published: Mon, November 20, 2017
Money | By Armando Alvarado

Embattled Toshiba to boost capital by $5.3 bn share issuance

Embattled Toshiba to boost capital by $5.3 bn share issuance

Shares of Toshiba Corp tumble 4.1 percent after the troubled conglomerate said it would raise 600 billion yen ($5.35 billion) through the sale of new shares.

Toshiba also confirmed it was looking at selling Westinghouse assets. "Toshiba's management may want to take advantage of such pressure from overseas funds to carry out large-scale reforms, which require job cuts and asset sales". That ensures it avoids delisting. Each will be priced at ¥262.8, a 10 percent discount from Friday's closing price.

Toshiba's flash memory unit may not be sold in time to bring in the necessary capital, because it needs to clear competition laws in different countries. Buyers must see value in Toshiba's residual interest in memory chips, plus the potential for turnaround elsewhere.

Toshiba posted a negative net worth of ¥552.9 billion at the end of March 2017 due to losses at its USA nuclear operations, an amount expected to grow to ¥750 billion by the end of the fiscal year.

Singapore-based fund Effissimo, established by former colleagues of Japan's most famous activist investor Yoshiaki Murakami, will become the largest shareholder in Toshiba with an 11.34 percent stake.

Tokyo stocks opened lower Monday morning following declines on Wall Street, with Toshiba plunging after the embattled Japanese conglomerate announced plans to issue new shares.

See the Official Trailer for Ava DuVernay's 'A Wrinkle in Time'
However the bright blue lake and landscape are very familiar to most Kiwis. "Be a warrior ", Winfrey's character says. Meg is accompanied by her preternaturally bright little brother, Charles Wallace, and her schoolmate Calvin O'Keefe.

"The foreign funds and activists are seeking upside, betting on the possibility Toshiba will achieve a V-shaped recovery", Akino said.

Private equity firms Blackstone Group and Apollo Global Management have teamed up to bid for the business, while Cerberus Capital Management was in talks with USA nuclear power plant component provider BWX Technologies about submitting a joint bid, the sources said at the time. - As the parent company of Westinghouse, which has filed for Chapter 11 bankruptcy protection in the United States, Toshiba owes the owners of two US nuclear projects $5.9 billion.

The company hopes to free up cash to repay the debts of its nuclear power subsidiary Westinghouse Electric in the United States, which declared bankruptcy in March.

Toshiba aims to use the capital it gains from the share sale for a full payment of so-called "parent-company guarantees" related to its Westinghouse unit, according to the statement.

After Toshiba settles its obligations to Westinghouse creditors, it will be able to demand reimbursement from Westinghouse itself. - It plans to sell its claims against Westinghouse and some loans, together amounting to 760 billion yen.

Like this: