Toshiba Looks to Raise $5.3 Billion in Share Offering

Published in

Toshiba Corp. plans to raise ¥600 billion ($5.3 billion) through a new share offering if a ¥2 trillion deal to sell its chip unit doesn’t get on track to meet an end-of-March deadline, a person familiar with the matter said. The plan fits into Toshiba’s effort to recover from the financial blow it suffered when its U.S. nuclear unit, Westinghouse Electric Co., filed for bankruptcy protection in March, The Wall Street Journal reported. Toshiba’s shareholder equity stood at negative ¥619.8 billion as of Sept. 30, signifying that liabilities outweighed assets belonging to shareholders by that amount. If the figure stays negative as of March 31, the end of Toshiba’s fiscal year, that would mark the second straight fiscal year ending with negative shareholder equity and would trigger the company’s delisting from the Tokyo Stock Exchange under exchange rules. Read more. (Subscription required.)