Toshiba to split into three after scandals

It's been plagued by a series of scandals.

Now Toshiba says it's going to split into three companies.

The restructuring plans were set out at a news conference on Friday (November 12).

Chief Executive Satoshi Tsunakawa explained:

"At today's Board of Directors meeting, we decided to spin off two companies from Toshiba to make it into three independent companies as a strategic reorganisation. It will be an infrastructure service company, a device company, and the current Toshiba."

Toshiba embarked on a strategic review after a damaging corporate governance scandal.

A probe found it had colluded with Japan's trade ministry to block shareholders from gaining influence.

That was just the latest crisis following an accounting scandal back in 2015.

Now it's hoped the new deal will appease activist shareholders who had called for radical change.

However, one activist told Reuters that the plan was disappointing, and unlikely to win support at a shareholders' meeting.

Even so, Tsunakawa says Toshiba hopes to complete the overhaul in two years.

Friday's news came after markets closed in Japan.

But Toshiba's Frankfurt-listed shares fell 4% in early trades.

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