Japan's Toshiba says considering split into three separate units

·1-min read
FILE PHOTO: The logo of Toshiba Corp. is seen at the company's facility in Kawasaki

TOKYO (Reuters) - Toshiba Corp is considering splitting itself into three companies focused separately on infrastructure, devices and memory chips, a spokesperson said on Monday, a move that could address the Japanese firm's persistent conglomerate discount.

The move is also seen easing pressure from activist shareholders who now make up a large portion of the sprawling Japanese company's investor base. A conglomerate discount refers to investors' tendency to value a diversified group of businesses at less than the sum of the group's parts.

The plan calls for Toshiba to split the three businesses and list each of the companies in a few years, the spokesperson said. The move is one strategic option being considered, the company said in a statement.

Toshiba is in the process of drawing up a new mid-term plan to boost corporate value. The Nikkei newspaper earlier reported that Toshiba would aim to be split by 2023.

Toshiba also said no definitive decisions have been made by Toshiba as of now, adding that it will make an announcement if any decision is made that requires disclosure.

(Reporting by Makiko Yamazaki; Editing by David Dolan and Bernadette Baum)

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