• Kyodo

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Toshiba Corp. said Friday it plans to book a special profit of roughly ¥40 billion ($357 million) in the business year to March from the sale of its Swiss subsidiary’s shares, part of its effort to raise cash for its looming restructuring plans.

The embattled conglomerate said it would offer its 60 percent stake in Landis+Gyr Group AG for some ¥161.7 billion when it listed the shares on the SIX Swiss Exchange on Friday.

“Toshiba seeks to enhance its financial structure by selling its entire interest in Landis+Gyr Group AG,” Toshiba said in a statement.

The company, saddled with huge losses stemming from its now bankrupt former U.S. nuclear unit, is scrambling to raise cash to eliminate its negative net worth by next March to prevent it from being delisted from the Tokyo Stock Exchange.

Toshiba estimates it had a negative net worth of ¥581.6 billion as of the end of March.

Toshiba owns a 60 percent stake in Landis+Gyr Group, the holding company of smart meter manufacturer Landis+Gyr AG, while the state-backed Innovation Network Corp. of Japan holds the rest.

Toshiba also said Friday that INCJ is set to sell its entire stake in the Swiss firm. The two Japanese entities bought Landis+Gyr in 2011 for $2.3 billion.

Toshiba is in the midst of a crucial reform plan that involves selling its profitable chip unit Toshiba Memory Corp. to raise funds to bolster its financial standings. The cash-strapped company has already chose a Japan-U.S.-South Korean consortium as its preferred bidder.

But negotiations on the sale have stalled after South Korean chipmaker SK Hynix Inc., a member of the consortium, started demanding voting rights in the chip unit instead of just providing loans to a fund in the consortium as initially planned. Toshiba had to postpone a self-imposed deadline to seal a deal on the chip unit sale.

The chip unit sale is also mired in a legal dispute between Toshiba and its joint chip production venture partner Western Digital Corp.

The U.S. company is fiercely opposed to the sale, claiming any sale of the unit to a third party without its consent breaches the contract signed with Toshiba.

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