REUTERS/Toru Hanai

Toshiba plans to sell its stake in Kioxia Holdings


Japanese corporation Toshiba on Monday announced plans to sell its 40.2% stake in flash memory manufacturer Kioxia Holdings and return most of the proceeds from the sale to shareholders, confirming the rumors that appeared a few days ago.

REUTERS / Toru Hanai

In a statement, Toshiba did not disclose details of the planned sale. Sources familiar with this issue said on Saturday that the process would begin after the company placed its shares on the Tokyo Stock Exchange.

Japanese media say Kioxia could be valued at $ 32 billion. Recall that in 2017, Toshiba sold its flash chip business to a consortium led by US private equity firm Bain Capital for $ 18 billion, then buying back a 40.2% stake as part of the transaction.

Toshiba also announced today that it has received two proposals for the appointment of new board members, which it intends to reject. One of them comes from Effissimo Capital Management, its main shareholder with a 15 percent stake, calling on Toshiba to elect the co-founder of Effissimo on the board of directors, and the other two to be external directors. The second proposal is from the 3D Opportunity Master Fund, which is seeking the election of two candidates.

In response to both suggestions, Toshiba stated that the board of directors it appointed consists of people with in-depth knowledge in various fields and provides appropriate diversification.

If you notice an error, select it with the mouse and press CTRL + ENTER.

Leave a Comment