Toshiba Considering Split into 3 Firms

Tokyo, Nov. 8 (Jiji Press)--Toshiba Corp. <6502> is considering splitting itself into three companies as it seeks to improve corporate value, sources familiar with the matter said Monday. The Japanese company plans to reorganize itself into infrastructure, devices and semiconductor memory firms, all of which will go public, the sources said. Toshiba will become the first major Japanese electronics maker to split itself into several firms and bring them public. The company apparently thinks that making the three businesses independent will make it easier for investors to assess corporate value. It is considering including the reorganization in a medium-term business plan, due out Friday, the sources said. The infrastructure firm will mainly engage in power generation, telecommunications, elevators and air conditioners. The devices firm will handle hard disk drives and power semiconductors. The semiconductor memory firm will hold shares of Kioxia Holdings Corp., which is partly owned by Toshiba. Toshiba President and CEO Satoshi Tsunakawa has given priority to dialogue with activist investors after British investment fund CVC Capital Partners proposed acquiring the company in April. END