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Nov. 19, 2017, 8:33 p.m. EST

Toshiba plans to issue $5.3 billion in new shares to avoid delisting

Troubled conglomerate hopes to raise money from foreign funds

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By Takashi Mochizuki


AFP/Getty Images
Troubled Toshiba’s equity stood at negative ¥619.8 billion as of Sept. 30.

TOKYO — Toshiba Corp. said it would raise ¥600 billion ($5.3 billion) through the sale of new shares to foreign funds, a step to avoid a delisting from the Tokyo Stock Exchange if the planned sale of its chip unit is delayed.

The troubled Japanese conglomerate will issue about 2.3 billion shares, equivalent to 54% of its outstanding shares, at ¥262.8 each. Under the plan, Singapore-based activist fund Effissimo Capital Management Pte Ltd will become the largest shareholder with 11.34% ownership, Toshiba /zigman2/quotes/205628942/delayed JP:6502 +0.81%   said on Sunday.

Since the bankruptcy filing of Toshiba’s U.S. nuclear subsidiary Westinghouse Electric Co. in March, the Japanese company has been looking for ways to raise funds. Earlier in the year, Toshiba said it may not be able to stay in business.

Toshiba’s shareholder equity stood at negative ¥619.8 billion as of Sept. 30, signifying that liabilities outweighed assets belonging to shareholders by that amount. If the figure stays negative as of March 31, the end of Toshiba’s fiscal year, it would trigger the company’s delisting from the Tokyo Stock Exchange under exchange rules. Toshiba signed a deal in September to sell its computer flash-memory chip business to Bain Capital and other investors

.An expanded version of this report appears on WSJ.com.

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/zigman2/quotes/205628942/delayed
JP : Japan: Tokyo
¥ 2,354.00
+19.00 +0.81%
Volume: 261,900
April 2, 2020 9:40a
P/E Ratio
N/A
Dividend Yield
0.85%
Market Cap
¥1079.53 billion
Rev. per Employee
¥26.86M
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