Toshiba shareholders approved the sale of its Memory unit at a meeting on October, 24. The purchase is being made by an alliance of electronics firms, led by Bain Capital and Foxconn for 2 trillion yen ($17.5 billion).
Toshiba aims to cut significant debts through the deal, after making heavy losses in 2016 as a result of it’s U.S. nuclear business. The company hopes that this will help keep its shares listed on the Tokyo Stock Exchange, which it considers a prerequisite for a turnaround.
However, Toshiba’s troubles have led many shareholders to question the company’s governance. Investors are also raising concerns on the rebuilding of the company while it is suffering from severe brain drain. Despite this, Toshiba reaffirms that it will aim to improve profitability of existing businesses before expanding operations in new growth markets.
Read the full articles:
- “Investor go-ahead for memory sale no vote of confidence in Toshiba”
- “Toshiba shareholders approve $17.5bn memory unit sale”
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