Toshiba plans to throw away 'hot potato' Westinghouse Electric 20 Toshiba announced that it will study the divestment and nuclear electronics company Westinghouse related assets, plans to issue new shares and financing 600 billion yen (about 5.4 billion US dollars) to avoid Due to insolvency delisting by the Tokyo Stock Exchange.
Toshiba said in a statement that the sale of shares in the Westinghouse Electric will allow the company to significantly cut back on its resources and funding for the rebirth of Westinghouse Electric and put them into new business, and with the proceeds from the successful issuance of shares, the company The total net assets of -7500 billion yen in the balance sheet will be flattened by the end of the fiscal year ending in March next year.
Toshiba why engage in such a 'big move' After going through the accounting scandal in 2015, Toshiba handed down the transcripts worse and worse, currently under pressure to withdraw from the market.According to the Tokyo Stock Exchange, Toshiba must By the end of March 2018, it will end its indebtedness for two consecutive years or it will be forced to withdraw from the market.
In order to solve the delisting crisis, Toshiba had to 'warrior broken wrist.' In recent years earnings data, Toshiba's nuclear business in the loss of more than 10 billion yen in four years.Therefore, cut off the nuclear power business is eager to plug a huge asset loopholes Toshiba is reasonable.
Toshiba and Westinghouse have a long history of grudges Toshiba's nightmare has already taken its toll since Toshiba acquired Westinghouse at a premium of 3x, or $ 5.4bn.
At that time not only the Japanese government, the world are encouraging nuclear power construction.Unexpectedly, the 2011 earthquake in Japan led to the construction of Toshiba Toshiba nuclear power plant leaks, the pace of nuclear power construction worldwide slowed down.The incident Toshiba Resulting in a very big blow.In addition to the cancellation of some orders, the remaining construction order costs all the way up, time and again delays.
In spite of the blow, Toshiba was still optimistic about the future of its nuclear power business. In 2015, Toshiba acquired another CB & I nuclear power company through Westinghouse Electric Company, which was a long-time strategic partner that co-contracted with Georgia And 2-based nuclear power plants in South Carolina.
Nuclear power business has been sluggish, resulting in rising construction costs and the extension of the duration of the Westinghouse Electric and CB & I have a serious disagreement on the cost-sharing problem, and even finally developed into a courtroom to the point of exhaustion Toshiba in order to 'rest and rest In 2015, Westinghouse Electric acquired the CB & I Nuclear Power Subsidiary for $ 0.
Toshiba wanted to end the conflict through mergers and acquisitions to reduce transaction costs, but did not think it was 'stuck.' After the merger, Westinghouse electrical debt all the way up, resulting in Toshiba's loss in 2016 even more than during the financial crisis in 2008. In order to To minimize corporate losses, Toshiba repeated weigh-outs and multi-game in March this year to the New York Federal Bankruptcy Court for Westinghouse bankruptcy protection.
In fact, Toshiba has always been in a passive position in the relationship between Toshiba and Westinghouse Electronics Co. Ltd. Since Toshiba invested in Westinghouse in 2006, it has not been able to manage this 'pride' even though it has repeatedly increased its shareholding.
Toshiba nuclear power sector is not a secret issue of a substantial cost over the project, Toshiba did not address this problem despite the Westing losses, because Westinghouse is like a semi-independent kingdom, Toshiba simply can not intervene.
Today, the dreadful Toshiba finally made a painstaking attempt to "take the nuclear out" and sell the disconcerted "world's No. 1 nuclear power company." It is reported that private equity firm Blackstone Group, Apollo Global Management co-bid Westinghouse, and other The company is considering a bid.