Whew... Toshiba rustles up $5.4bn to avoid delisting
Weakens WD position on blocking flash biz sale
Beleaguered Toshiba, facing a Tokyo stock exchange deadline, has planned a $5.4bn share issue to avoid a delisting threat.
Reuters reports it is also considering selling the assets of its bankrupt Westinghouse nuclear power station building business which plunged it into the financial mess threatening to kill it. Tosh is a position of negative net worth because its nuke power station losses are so huge.
It wants to sell its interest in the flash foundry joint venture it has with Western Digital Corp, but WD is aiming to block the sale to a Bain-led consortium through court action, wanting to secure a favourable outcome for the joint venture from its point of view.
Tosh wanted the sale to complete by March next year so it could get recapitalised and avoid delisting. The WDC court actions make that unlikely, so Toshiba is selling shares to raise the needed cash instead. ?
This weakens WDC's negotiating position as it takes time pressure off Toshiba and it can now, if it wishes, make moves to set up its own independent flash fab capabilities, perhaps with the Bain consortium's agreement and involvement.