Toshiba Corp's plan to raise some $5.4 billion through a sale of new shares will help it avoid a delisting, but will also see more than 30 overseas investors, including activist funds, own 35 percent of the embattled conglomerate. Ciara Lee reports.
It's been at risk of being delisted for months but Japanese conglomerate Toshiba has a plan. It's to raise 5.4 billion dollars through a sale of new shares. The issue will see more than 30 overseas investors, including some activist funds, own 35 percent of the company. But it should pay off billions of dollars in liabilities at its bankrupt U.S. nuclear power business, Westinghouse and help Toshiba return to positive net worth by the end of the financial year in March An $18 billion sale of its prized memory chip unit is unlikely to close before then after a highly contentious auction process led to delays in deciding on the buyer The issue of 2.28 billion new shares will result in a massive 54 percent dilution in earnings per share. But Toshiba's investors didn't seem to mind too much. Shares, having faced a battering this year, were down just 5 percent on Monday as the delisting risk was removed