By Takashi Mochizuki
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
Why venture capitalists are investing in the vitamin industry
Vitamin startup company Ritual is trying to reinvent the vitamin with the help of sophisticated marketing, a team of doctors, and an influx of venture capitalists.
Also popular on WSJ.com: