Toshiba officially announced the split into three companies

Japan’s Toshiba Group officially announced today that it will split into three independent companies, as follows:

• Infrastructure Service Co. The company's main business is infrastructure services, which will include previous energy systems and solutions, infrastructure systems and solutions, building solutions, digital solutions, and battery businesses.
• Device Co. The company includes Toshiba's electronic equipment and storage solutions business.
• Toshiba will continue to hold shares in Kioxia and Toshiba Tec Corporation (TOKYO: 6588).

Officials said that after Toshiba's split, it will make its business more flexible, enabling each company to make more precise decisions in its field, reduce operating costs, and give full play to its own advantages. In addition, Toshiba intends to monetize Kioxia’s stock to maximize shareholder value and return the net profit to shareholders in full as soon as possible without affecting the implementation of the split.

The split plan has been unanimously approved by Toshiba's board of directors. The Strategic Review Committee of the Board of Directors, SRC, is composed of 5 independent outside directors to review a wide range of strategic options. During the review, SRC solicited shareholder opinions on the company's strategic direction and discussed with multiple potential partners. After nearly five months of review, Toshiba's management team and board of directors believe that splitting into three independent companies is the best way to increase shareholder value.

IT Home understands that Toshiba expects that the revenue of the infrastructure business will reach 2.09 trillion yen in the 2021 fiscal year, while the revenue of the equipment company will reach 870 billion yen. In addition, Toshiba also plans to return 100 billion yen (approximately US$875 million) to shareholders in the next two years.