Business / Corporate

Toshiba's board discusses taking full control of some listed subsidiaries

JIJI

Major machinery and electronics maker Toshiba Corp. is considering taking full control of some of its four listed subsidiaries, it has been learned.

With Toshiba’s board already discussing the matter, the company may reach a conclusion within this week at the earliest, informed sources said.

The four listed units are Toshiba Plant Systems & Services Corp., Nishishiba Electric Co., NuFlare Technology Inc. and Toshiba Tec Corp.

Some are critical of Toshiba having listed units in light of corporate governance, arguing that the practice could potentially cause a conflict of interest between the parent company and minority shareholders.

Also, because Toshiba has received inquiries about its capital policy from overseas investors, the company seems to be considering options, including making up to three of the four firms, excluding Toshiba Tec, fully owned subsidiaries, according to the sources.

Toshiba, which is listed on the first section of the Tokyo Stock Exchange, is working to strengthen its profitability under a five-year business program that started in April.

Toshiba Plant Systems and Toshiba Tec are listed on the TSE’s first section, Nishishiba Electric on its second section and NuFlare Technology on the Jasdaq market, part of the TSE and mainly for stocks of startups.